Gyroscopic Investing

Here are the entrepreneurs I'm supporting with microfinance loans for my second round at bat:

Sanath Kumara Narangoda
Sector: Handicraft
Loan Amount: $393.70
Guarantee in force: $196.85
Entrepreneur profile: https://www.unitedprosperity.org/us/entrepreneur/232

Pathmini Dasanaya Ralalge
Sector: Services
Loan Amount: $236.22
Guarantee in force: $118.11
Entrepreneur profile: https://www.unitedprosperity.org/us/entrepreneur/235

Sunetra Podimenike Kuruppu Mudiyanselage
Sector: Services
Loan Amount: $393.70
Guarantee in force: $196.85
Entrepreneur profile: https://www.unitedprosperity.org/us/entrepreneur/238

Dayaratne Horatal Wedige
Sector: Construction
Loan Amount: $393.70
Guarantee in force: $196.85
Entrepreneur profile: https://www.unitedprosperity.org/us/entrepreneur/239

Chamila Manori Jayaratne
Sector: Agriculture
Loan Amount: $236.22
Guarantee in force: $118.11
Entrepreneur profile: https://www.unitedprosperity.org/us/entrepreneur/240

Chandrawathi Wedalage
Sector: Agriculture
Loan Amount: $236.22
Guarantee in force: $118.11
Entrepreneur profile: https://www.unitedprosperity.org/us/entrepreneur/241

Mangalika Chandrakanthi Aluthdurage
Sector: Agriculture
Loan Amount: $236.22
Guarantee in force: $118.11
Entrepreneur profile: https://www.unitedprosperity.org/us/entrepreneur/242

Just curious... is there any particular reason you go through United Prosperity instead of Kiva?  I have a very small Kiva account but have never gotten around to looking at alternatives.

flyingpylon wrote: Just curious... is there any particular reason you go through United Prosperity instead of Kiva?  I have a very small Kiva account but have never gotten around to looking at alternatives.

UP uses a guarantor model, whereas K is more of a direct lending approach.  But, I also discovered UP first before K and when I checked out K, I just didn't like it.

What sort of default rate do you see using this approach?  25% interest seems almost incredible - loan shark worthy, if you will.  I don't mean to disparage it, but I think the highest interest rates also show the highest default rates, but perhaps that's simply due to the higher risk profile of these loans.

Storm wrote: What sort of default rate do you see using this approach?  25% interest seems almost incredible - loan shark worthy, if you will.  I don't mean to disparage it, but I think the highest interest rates also show the highest default rates, but perhaps that's simply due to the higher risk profile of these loans.

Microfinance to help poor people become productive entrepreneurs and earn altruism brownie points and modest 1-2% returns for doing such a good deed to change the world.

25% interest is only to be had from the riskiest peer2peer lending out to fat, happy, rich, spoiled Westerners to consolidate their debt, pay for overpriced weddings, buy a car lemon, etc..

But hey, I could be wrong!