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Investment Information – Microloans

I’m wanting to spread my wings a little bit when it comes to diversifying my portfolio a little bit more. How is it when it comes t the Microloan investing field? I already do P2P lending and stuff, but I thought maybe investing in 3rd world nations and economies, allowing people to get their own lives started, would both make me feel good and see a decent return. Whats the rate of return like, how much do you invest before seeing any real money, and all that information will really help me out a lot to decide what I do next fiscal season.


What are Microloans actually? Are they what they sound, where you just loan someone like, $60 or something for them to buy something and they pay you back? I’m googling it right now to look up information but I’m getting all kinds of information.

Hello Picklerick

Let me answer your question first.

Microloans are loans that you give out that are typically under £1000. Imagine loaning £5 to a friend, who said he’ll pay you back next week. And next week he gives you £10 back becuase you helped him out of a tight spot.

Thats the basics of it. Microloans are a kind of Peer to Peer Lending that are small, for small things. They can be for basic home improvements, to get a new vido game system, or anything else and you pay it back with a little bit extra. Its also used for oversea’s investments as well where £25 can go a LOT further than ehre at home. Typically used to help Third World communities be able to afford simple things like a stove, or materials to start a local business.

To answer Nelly’s question

Microloans ARE like P2P lending, as I said. Investing in third world nations though typically don’t net you a big return. Usually less than 2%, sometimes even less than %1. Sometimes if you loan £100 you’ll be lucky to see a single £ back. BUT, it does help out in the long run for people who live in the area. Invest in it more for the help you’re giving, rather than intending to see a hgh rate of return. I personally devote 5% of my portfolio into it because I feel it reaches a lot further than just donating to charity.

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