Ask HN: Are microloans a scam?
https://news.ycombinator.com/item?id=4660561I believe many at HN must be Kiva users and have lent many loans. I support the cause and good will behind it but there seem to be more here
Today I happened to glance over "Portfolio Yield" of field partners. It's as high as 54% for many. Even then some of them are reporting negative profitability or maximum as little as 5%.
They are operating in third world countries and making millions from poor borrowers at exorbitant interest rates; even higher than credit cards. How's that possible and is this all operation some scam like aid to African countries?