Have you heard of micro-lending? I’m trying it out on prosper.com. I’ve loaned somebody $100 , along with a bunch of other lenders for a total loan of $13,000 at 24% APY. That works out to $140 for me if they take the maximum three years to pay it back.
That’s if they pay it back. But I have to believe that a majority of the borrowers looking for micro-loans are honest. With the credit crisis, it’s getting difficult to get traditional loans, so I’m all for helping each other out, one person to another. If this first one goes well, I’ll put more money out there. Either way, I’ll post here to let you know what happens.
