The main benefit of micro lending is returns on your investments ranging from 5-9%. This is much higher than you would get on a savings or money market account. These returns take into consideration a 4-5% default rate and 1% in fees from the micro lending company.

Micro loans are not tied into the stock market, so even if the market plunges you should still get a good return on your investment., Borrowers may default on the loans. This type of loan is not secured by a house or other collateral that a bank would normally require. Borrowers can also file for bankruptcy and you would lose your investment., Rather than choosing individual borrowers that can become very time consuming, you can arrange for automated investing. You select a mix of loan grades according to borrower risk and set the amount for each loan. Then the tool will automatically invest in loans for you and send a daily report online.
Evaluate the benefits of micro lending.
Evaluate the risks of micro lending.
Consider an automated investing tool.
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