What criteria attract you to choose a Kiva loan ?

Discussion in 'Kiva | Loans That Change Lives' started by milchap, Feb 17, 2013.  |  Print Topic

  1. milchap
    Original Member

    milchap Gold Member

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    We all have our methodology to choose our Kiva loans.....

    I do due diligence on every loan that I make. I usually have about 400$ to reinvest as I have built up a strategic porfolio with regular and predictable cash flow for repayments. It is the same methodology that I applied to build my personal pension plan.

    The first thing that I examine is the quality of the Field partner sponsoring a loan. I rely on the vetting done by Kiva and I examine the track record of the Field parter choosing loans to post.

    I next look at the timeframe of repayments. I prefer short time loans as I feel that my repeated loans get more bang for my $25.

    Two geographic areas of the world attract my attention: Africa where I worked for two years as undergraduate NGO and Central and South America where microlending is well established. I always reserve a few loans for other areas of the world.

    There are a few types of loans that I avoid.....anything with do with alcohol for I have witnessed firsst hand the ravages of alcohol especially in Africa where they can ill afford to buy booze ! (disclosure: I enjoy wine and scotch !!!!! ). Personal loans for weddings etc are not my thing. I am a classic microlender and I avoid certain kiva loans outside of my parameters. You can guess which ones that I am alluding to. ;)

    Through personal choice my loans I rate lower risk.... if you can term microlending a low risk activity as I am preparing to accept loss as a by product of microlending. I do however stretch a bit every repayment cycle and take a chance to help out one or two riskier loans.

    Anyone else want to share their criteria?
    YULtide and miles and smiles like this.

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