New loan for multiple biz's

[Guest]

.

[mmoralls]

Hello all,

I'm new to this forum but not to Kiva. I've loaned a small amount ($25) before but now want to pledge more ($1000). I figured I would

spread it out over 10 business' ($100 ea.) but would like to hear other suggestions before I decide.

Mark
NC, USA

[Jan & John]

Hello all,

I'm new to this forum but not to Kiva. I've loaned a small amount ($25) before but now want to pledge more ($1000). I figured I would

spread it out over 10 business' ($100 ea.) but would like to hear other suggestions before I decide.

Mark
NC, USA

Hi Mark, and welcome to KF 

I think there are probably as many answers to your question as there are people here...
I have mostly $25 loans with some exceptions when some feeling told me to put more in...
I am also glad that on the loans that did not succeed, I had not invested too much, gladly they are also very very few.
I use Kivafolio to help me balance out my portfolio so I don't have all my eggs in one basket.
It really does depend on your own tolerance for risk.

-jan-

[AccountAbility]

Welcome to Kiva Friends, Mark - 

Unless you already have a substantial portfolio, I would caution you against spreading it across only ten loans.  My initial loan amounts were unwisely significantly more than $25 and one totally defaulted.

That said, there is a law of diminishing returns on spreading it too thin.  Once we built our portfolio to a significant number of repaying loans, we consistently went to $50 per loan, feeling that the diversification we still maintained was sufficient for our purposes.  And the side benefit is with half the number of loans I can recognize my borrowers and can keep up with them in their repayments and updates.

Dan