Lone lending (also known as solo lending)

Discussion in 'Kiva | Loans That Change Lives' started by miles and smiles, Dec 11, 2011.  |  Print Topic

  1. miles and smiles
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    miles and smiles Gold Member

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    A few times this week the term lone lending has come up. So, it feels like a good time to explain what is special about lone lending.
    Lone lending is when one lender fully funds a loan to one borrower.
    Recently I was checking for new loans when a $25 loan came up. Yes, a $25 loan!
    So, obviously I was the lone lender on that loan!
    But sometimes other small loans come up and a lender chooses to fund it him/herself.
    This is not for everyone, because your risk is increased.
    But if you are willing to take the leap, you know that you and only you funded that loan.
    This is real person to person lending.
    Well, maybe not as real as lending money directly to a friend or relative, but in the Kiva context, it is true person to person lending.
    I've done it one other time with a $125 loan.
    And other milepointers have done solo laons, too.
    In fact, yultide started the lone lenders team on Kiva:
    http://www.kiva.org/team/lone_lenders
    If, lone lending interests you, just use Kiva's search by loan amount.
    I did it just now while writing this and found a $75 loan (which I will NOT fund):
    http://www.kiva.org/lend/369384
    Loans under $100 aren't too common, but I do see them from time to time.

    And congrats to everyone who has taken the leap and become a lone lender!
    You may be a lone lender, but you are not alone!
     
  2. DAS02135
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    DAS02135 Gold Member

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    I've done this once. At least for me, it didn't feel any different. Since I'm confident most loans will be funded (and many are pre-dispersed for that matter), lone lending didn't feel significant for me.

    I'm I looking at it the wrong way? Perhaps I'd feel more if I took an unpopular loan and funded it all?
     
  3. miles and smiles
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    miles and smiles Gold Member

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    It's not a matter or wrong or right. I just find it to be an interesting twist on micro-lending. Glad to know you're in the "club", too.
    It would probably feel significant if you took on a $1000 + loan yourself. :) $125 is as big as I have done on one loan, so far.....................
     
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  4. kiwi
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    kiwi Gold Member

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    When I started on kiva I tried to keep my share of each loan to 10% or less. As I've built up a greater outstanding loan balance the significance of each loan is lower and I'm now lending up to several hundred on some loans including a few where I'm the only lender.
     
  5. YULtide

    YULtide Gold Member

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    For me, it's the fun of finding a small loan and then funding it solo. And finding one of $50 or even $25 is rare indeed! I've funded a couple for $75.
     
  6. unavaca
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    unavaca Gold Member

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    I still can't bring myself to do it; the risk is too high. Losing out on a solo loan at the $100+ level means that 4+ other loans (@ $25) will not get funded by the missing repayments.
     
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  7. YULtide

    YULtide Gold Member

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    We each have to decide our own comfort level.
     

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