Any microfinanciers here? (TB Microfinance Thread)

Discussion in 'Off Topic [BG]' started by tplyons, Dec 25, 2013.

  1. tplyons


    Apr 6, 2003
    Madison, NJ
    Through some of the people I work with, I have become very intrigued by microfinance. For those who don't know, microfinance is a source of finance for those who cannot obtain these services from traditional sources like banks. Many individuals will make small microloans to an individual, say $25 apiece and the borrower will receive $750 (from a total of around 30 lenders) in order to finance personal or business needs, and will repay that loan in a traditional manner.

    It tends to be higher risk than traditional loaning, but I feel its worth the risk to help people in impoverished areas. I made my first microloan back in March, and have made a few small ones since then, but in September I decided I would make at least one $25 microloan every month. I even gave my family a $25 donation to make microloans themselves for Christmas.

    What are your thoughts? Any stories?
  2. jmattbassplaya

    jmattbassplaya Supporting Member

    Jan 13, 2008
    Atlanta, GA.
    As an investor, I can't see the appeal at all. There's just too much risk for such a small, potential return. As a charitable person, I think this is a much better idea than giving money to a traditional charity. I like when I can see how my money is positively affecting someone.
  3. tplyons


    Apr 6, 2003
    Madison, NJ
    I don't approach microloans as an investor... this is money that I expect to lose but hope to see again so I can give it to someone else. I approach them as a donation and a way to pass my good fortune forward.

    For me, I work an hour of overtime and can make a $25 microloan. Why not do a little bit extra to help someone out?
  4. iammr2


    Jun 10, 2002
    Just send your money to me then. If you're expecting to lose then I can help you exceed your expectations.
  5. michael_atw


    Feb 28, 2009
    Jamestown, NY
    Payday loans?
  6. Selta


    Feb 6, 2002
    Pacific Northwet
    Total fanboi of: Fractal Audio, AudiKinesis Cabs, Dingwall basses
    I've done this off an on over a couple of years now. It's interesting, and so far I only lost a very small amount (I think it was $25 or $50). I don't approach it as investing or expecting any kind of noticable ROI.