How to Make Money with Microloans
Investing in micro lending companies can be a great way of earning passive income instead of stashing your money in a savings account which attracts very little interest over time.
Making money with microloans is pretty simple, all you need to do is register with a reputable micro lending company and create your portfolio.
How it Works
Once you pick the micro lending company, you wish to invest in, start the registration process. Here you will need your details like name, physical and mailing address, bank or PayPal account details, social security number, etc.
Manage Microloans Account
Set the type of lending you prefer, either manual where you make your investments or automated where the micro lending website automatically invests for you. You will also link the bank or PayPal account details; this is for taxation purposes, funds transfer to and from the micro lending account and also to prevent fraudulent transactions. Fund the account: after you finish updating your profile, load the amount you wish to invest.
Start micro lending
View different borrower profiles to choose your best candidate. You will see how much they need, how much they have raised so far, what they need the cash for etc. You can fund a loan with as low as $25.
once you have funded a loan, the borrower will start making payments until they repay full loan amount plus interest. Upon receiving your money, you can either choose to lend to someone else or withdraw for your personal use. For micro lending organizations that are non-profit like Kiva, you can the donate funds.