How about a new type of loan for students or workers who want to take a year off (or more) in a foreign country and work as volunteers for a cause? The loan will be repaid in work hours, not in cash. The applicant will indicate how many hours he is willing to work a day and based on the minimum wage for the country calculate the total amount of the loan for the specified duration.
The bank or other organization disperses the loan in daily installments based on whether the applicant checked for work or not that day.
This is what it might make sense for a bank to do that. Usually banks hand out lump sums to charities or non-profit organizations and save on taxes. Why not hand the money to the volunteers directly who will work for the charities? The difference is that More people will probably volunteer if they hear they can take a year-off loan to travel that they repay through work than if a charity advertises its work and asks people to join it.
It will also be good PR for the first bank that tries it as it will enable it to build brand and loyalty with young people based on an experience that was fun early on in their adult life. The bank will thus be able to sell more of its products to them in the future banking on that loyalty and brand it built early on.
http://www.thinkaloo.com
Friday, May 1, 2009
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