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Microcredit Interest Rates and Their Determinants: 2004–2011

  • Richard Rosenberg
  • Scott Gaul
  • William Ford
  • Olga Tomilova
Open Access
Chapter

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.

Keywords

Interest Rate Operating Expense Loan Loss Loan Portfolio Funding Cost 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© The Author(s) 2013

This chapter is distributed under the terms of the Creative Commons Attribution Noncommercial License, which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.

Authors and Affiliations

  • Richard Rosenberg
    • 1
  • Scott Gaul
    • 1
  • William Ford
    • 1
  • Olga Tomilova
    • 1
  1. 1.Washington, DCUSA

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