I’m over here thinking about things I might invest in that (a) aren’t the stock market and (b) don’t require tens of thousands of dollars to get started, and I remembered that microloans are a thing. I love the idea, but have no idea how it works out in reality. Does anyone have experience - either as a lender or a borrower?
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No but I want to be a lender, please share all information.
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IIRC most microlending is done internationally. I’ve never done it, but I had an ex who did through Kiva. I think there can be a high chance of default for a lot of microloans, which may not be up your alley depending on your risk tolerance.
I’m reading the Wiki on microfinance right now and it seems pretty nicely informative: https://en.wikipedia.org/wiki/Microfinance
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I think there might be some terminology clarification needed? Microlending seems to be Kiva.org type stuff and aimed at developing world and small loans for chickens etc. What you might be chasing is Peer to peer?
Here is the Australian Government’s financial advice on P2P lending.
https://www.moneysmart.gov.au/investing/managed-funds/peer-to-peer-lending
I’ve not done P2P but have done kiva. The latter is more akin to charity where you might get your stake back to lend again.
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