Posted in Community :
Micro finance and sustainable development
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Activity:
6 views;
last activity : 07 06 2010 20:18:09 +0000
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Limited Access to Credit
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Less Transparency on the Cost of Credit
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Ideas in:
"Interest rates in Microfinance"
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When faced with an interest rate ceiling, MFIs will often retreat from the market, grow more slowly, and/or reduce their work in rural areas or other, more costly market segments because they cannot cover their operating costs. Similarly, interest ceilings discourage commercial banks from expanding into higher-cost rural or microcredit markets.
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MFIs subjected to interest rate ceilings have tried to cover their costs by imposing new charges and fees. Customers do not always clearly understand that these fees are part of the loan cost. This lack of transparency hurts the poor by undermining their ability to comparison shop for loans.
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Great insight Beena,,,thanks for sharing. |
I want an increase in the per capita income, as most of the equillibrium in the country is not in balance where still rich is richer and poor is becoming more poorer, so if the per capita income is increased where the population is having a sustained... |
Theory and practical are two different things for life. These books are written by only one persons experience but there are different situation and human beings are different they act according to that and not by reading and remembering any books. |
