Thinking of starting to do some microlending....

[easycougar]

Does anyone have any experience using http://www.lendingclub.com or http://www.prosper.com for investing?

 

[VoluntaryAmerican]

What can I say, I was raised by my parents to do a lot of volunteering and I consider myself lucky to be born in the United States. I figure microlending to third world business's is better for them then just throwing lots of free food and clothing in their direction. I'm not particularly concerned with getting my money back (would be nice though), 25 bucks to me probably means a lot less then 25 bucks to someone else. Does anybody else do this? Is their any pratfalls or scams I should be aware of?

If your "not particularly concerned with getting your money back" your venture is doomed at the start.

If your intentions are charity - than donate to charity.

Goodluck, either way.

 

[KingNothing]

If your "not particularly concerned with getting your money back" your venture is doomed at the start.

If your intentions are charity - than donate to charity.

Goodluck, either way.

I don't think you understand the point of this. You provide capital to lending institutions who are driven by a profit motive. They, in an attempt to make money, lend that capital to other individuals who intend to do the same.

The belief is that this will ultimately create self-sustaining economies in poverty stricken regions. I see no reason to question that belief. We're, in effect, tossing our excess capacity/capital/savings to people who hope to take advantage of it. Obama would call it "spreading the wealth around." But we're doing it free of coercion, and providing it to industrious people.

 

[kpitcher]

Does anyone have any experience using http://www.lendingclub.com or http://www.prosper.com for investing?

I don't have experience but I did look into both quite a bit as an investment opportunity. Prosper seems to have a bad reputation online because of past issues. Lending club appears far better and was one of Forbes Magazines best of 2011.

I can't use lendingclub as I'm in Michigan, it's not allowed in this state. Lending club was quick to respond on why, which I forwarded to my state rep and asked why, the Michigan Attorney General responded that they don't have a specific reason why lending club isn't allowed and I forwarded that response back to lending club. Frustrating. They offer a secondary option to trade notes once a loan is actually made but that is not as attractive.

 

[Schifference]

Micro-lend $25 or more my way PM so I can give you the details on where to send the $$$.

 

[oyarde]

No help for me , I need around 68k