Whether people will continue to loan them money.

What are you carrying?

And the corollary of more people willing to lend, is you that the actual standards go down.

Well, I'm sorry, Mrs. Thornton, but it is against bank policy to extend a loan for an exorcism.

Well we learned what happens.

At the time, there was a microlending group in the village that gave her a 65 dollar loan.

And that's the best they could do.

Let's just show an example of how the actual mortgage works.

And today, less than five years in,

I'd like to get a bank loan how do I go about that?

It's my code, E for equity. 80,000 loan.

The bank accommodated the company with a loan.

Every two months, the typical loan officer approves 35 to 40 loans.

I'm pulling out of his scheme.

So once again, it's just a loan to someone else.

97 percent of all the scheduled repayments came back to us on time.

What I want to do in this video is go over the math behind a mortgage loan.

And so that cash ended up here.

And it's really time we start thinking more creatively about how they can be fused.

And so with patient capital from Acumen and other organizations,

I'd like to apply for a smallbusiness loan.

But if this does open up lending markets and people start lending to the farmer or to the guy who wants to build factories, then maybe this is worth it.

Papa went to the bank to ask for another loan.

And she wants the infrastructure it is nice with a paved road.

Now, if you don't trust someone, you place restrictions on them, right?

You see we started working in Eastern and Central Europe, and moved to Russia.

So that's a very handsome return.

So the risk managers within the bank think they have a great deal.

So this is the treasury yield curve.

But essentially what happened is the investors in the mortgage backed securities provided the money to the special purpose entity to essentially loan to the borrowers.

Debt's a little different.

That's called paying off the principal.

It is generally true that if the money supply and the money supply is more than just the amount of dollars that are printed.

We're now moving into East Africa.

So this is lending some cash.

It's fun. Carl, this bank traditionally has never given out small loans.

Right?

And we could just say, that they have zero equity. and they have a million loan.

We took it, repaid the first loan, then took the second, repaid and we go on repaying and increasing the amount.

It could be patents, it could be licenses.

He's good at fund raising.

But in general, hopefully, I've shown to you that we can write the loan amount as the present value of all of the payments.

It's a kind of very nice, sophisticated way how to economically strangle a daily newspaper.

They just couldn't get up to 15,000 in savings.

loans, plus whatever they have left from the original 80,000