Publication: Are Microcredit Interest Rates Excessive?
Date
2009-02
ISSN
Published
2009-02
Author(s)
Rosenberg, Richard
Gonzalez, Adrian
Narain, Sushma
Abstract
Over the past two decades, institutions
that make micro loans to low-income borrowers in developing
and transition economies have focused increasingly on making
their operations financially sustainable by charging
interest rates that are high enough to cover all their
costs. They argue that doing so will best ensure the
permanence and expansion of the services they provide.
Sustainable (i.e., profitable) microfinance providers can
continue to serve their clients without needing ongoing
infusions of subsidies, and can fund exponential growth of
services for new clients by tapping commercial sources,
including deposits from the public.
Citation
“Rosenberg, Richard; Gonzalez, Adrian; Narain, Sushma. 2009. Are Microcredit Interest Rates Excessive?. CGAP Brief. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/df3c49a2-5ef3-54bc-87d5-aa963532119a License: CC BY 3.0 IGO.”