I'm new to Kiva, but have investigated similar things (Prosper, Lending Club) and have no illusions -- these are often the lenders of last resort, especially for US loans. If these people could get a loan with a bank, they would.

As a result, I'm much more inclined to make loans to rural areas where banks are uncommon and these NGOs may be the only organized form of loans available. I also look at the Field Partners' track records. The longer the FP's been on Kiva, the more loans they've made, and hopefully the more they've learned. I'd like to believe the stories provided are true although the cynic in me does question them. Despite that, I'm far more inclined to loan to someone who has an established business or a venture with a good chance for success.

I'm sorry, but I'm NOT going to fund a wedding on there, no matter how well the story is written. Going into debt for a wedding is madness, no matter the country you live in.

I also looked at the profiles of people who've made a high number of loans, figuring that they've been burned a few times, and follow their moves. No different than following expert investors.

I'll be honest -- I'm doing Kiva for MS/min spend requirements. I have plenty of true charitable giving I do throughout the year and have a 100% "default rate" with that. With Kiva, if there's some defaults, I just view it as more charitable giving.

As with all MS, and any investment for that matter, you should never have more exposure than you can safely handle losing.