When I first started micro lending in March of 2008, I was rather skeptical so I only deposited $500 dollars. One of my first loans of 50 dollars was never even paid back. That left me immediately with a loss. I hung on to my loans and the other 9 all started paying. Since then I have had over 200 loans and that was the only loan that didn't pay any back. I learned my lesson and reviewed all my new borrowers carefully.
My goal was not to keep my money in a bank account that was FDIC insured and earn 1%-4% interest. My goal was to take risk D, E, and High Risk loans with the potential to earn 34%. That is exactly what it has become. An interest earning account.
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