To implement the student loan platform, 51Give will:
1) Develop a user- friendly website for students, MFIs and lenders to easily access. (Twelve months development and testing)
2) Build relationships with microfinance institutions. (ongoing)
3) Build contacts and relations with universities in China. (ongoing)
4) Promote the website and service to students. (ongoing)
5) Promote to potential lenders. (ongoing)
There are approximately 25 million students in China that are paying tuition and fees ranging between RMB5,000-10,000. An annual Quality-of-Life Index (QLI) report released in January 2006 shows that 40 to 50 percent of low-income families in cities, small towns, and villages attribute their dire financial circumstances to increasing educational costs. As a result, many middle-class and lower income individuals are dependent on loans to pay for their education. At the same time, Chinese universities are heavily leveraged for the RMB500bn invested in infrastructure, and the schools need income, not the burden of financing student loans. 51Give aims to address this gap by unlocking a new source of capital-white collar and middle class investors that have limited investment choices and are looking for ways to give back to society-by developing a mobile and online-based platform that enables the microfinancing of student loans.
51give aims to establish a RMB100m fund (approximately US) that will provide low interest loans (not donations) from individual and institutional partners to students. The funds will be deployed to identify approximately 10 microfinance institutions (MFIs) depending on their organizational age, reputation gross loan portfolio, track record, repayment rates. We will also identify 10 universities beginning with those in Beijing.
51Give is seeking international partnerships and media support to gain overseas exposure in order to extend its network beyond China. 51Give serves as an online donation platform both for non-Chinese charities seeking Chinese individual or corporate donors and for non-Chinese donors seeking to give to Chinese charities.