- Posts: 20
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.
- Posts: 11
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.
- Posts: 4
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.