Abstract
From the beginning of modern microcredit, its most controversial dimension has been the interest rates charged by microlenders—often referred to as microfinance institutions (MFIs). These rates are higher, often much higher, than normal bank rates, mainly because it inevitably costs more to lend and collect a given amount through thousands of tiny loans than to lend and collect the same amount in a few large loans.
This paper and the research behind it have been jointly produced by Microfinance Information Exchange (MIX), KfW and Consultative Group to Assist the Poor (CGAP).
Independent Consultant.
Director of Analysis, Microfinance information eXchange (MIX).
Market Intelligence Lead, Microfinance information eXchange (MIX).
Microfinance Specialist, Consultative Group to Assist the Poor (CGAP).
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Rosenberg, R., Gaul, S., Ford, W., Tomilova, O. (2013). Microcredit Interest Rates and Their Determinants: 2004–2011. In: Köhn, D. (eds) Microfinance 3.0. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-41704-7_4
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DOI: https://doi.org/10.1007/978-3-642-41704-7_4
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