Originally Posted by
ddutil
I understand the difference between default and delinquency. Kiva considers something delinquent for a really long time before they consider it defaulted. That number I gave is the default rate. Believe me, I wish it wasn't.
The dollar amounts are not huge and I can afford it. My point is that somebody might read the glowing reports on here and toss in $10,000 trying to meet some card bonuses (remember, this is FT) and lose a lot of money that they cannot afford.
Is there a trend (country or MFI that is resulting in the high rate of defaults?) I have been fortunate to have zero defaults, though I can see one heading in that direction.
As
kipper and others have noted, there is an inherent risk in microloans and people should lend what they can as YMMV re: risks.