Monday, July 09, 2007
House loans in Mexico
I'm lending to a Mexican Kiva lender who wants money to build a house. They bought the land a few years ago and are paying rent, and need the initial capital to build. There are lenders who don't like this type of loan, because it doesn't directly affect a business and there isn't any guarantee that they will have the funds to pay it back. There is no descriptions that they work and can afford it, and there is more faith in these types of loans.
Well I have faith, I think the MFI has screened them to make sure they aren't burdened with the loan payments. And I think that they will actually work really hard to make sure they pay the loan, because they really want their own house. And on the flip side, its $25 to me. So I think the risks and rewards are worth the payoff.
I've been building in SL a lot lately, I see the need for houses..