Micro lending

Discussion in 'Private & Conventional Lending Discussion' started by Corzhens, Jul 2, 2015.

  1. remnant

    remnant Well-Known Member

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    There are various methods of microlending where I come from. One is called table banking where a group of people come together and contribute an amount of money to be loaned to several applicants in the group. Another form is the merry go round not to mention the good old shylocks which many love to hate. Asset leasing financing is also very popular and the least deleterious in the microlending scene.
     
  2. Corzhens

    Corzhens Senior Investor

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    That table banking is also being done here. It is like crowdfunding where several people join hands in filling up the need for money to lend to borrowers. But the crux of the matter is the interest to be paid on those loans. And since the process of pooling the money is quite complex, expect the interest rate to be a bit high. But one disadvantage of table banking is the collection of bad debts. When the borrower fails to pay the loan, pursuing the case is left to the proponent which usually does not pursue the case for collection.
     

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