New Study on Microcredit Interest RatesAnalysis reviews methodology proposed by Mohammed Yunus
Interest rates charged on microcredit is one of the most discussed issues in microfinance. At the heart of the discussion is the question of how microfinance institutions (MFIs) can fulfill their social missions while charging their clients interest rates that are higher than those offered by non-microfinance financial institutions, such as traditional commercial banks.
MIX Data Brief No. 4 - Analyzing Microcredit Interest Rates, produced by the Microfinance Information Exchange, is one of the first studies to analyze interest rates of microfinance institutions operating throughout the developing world. Also provided is an Excel sheet with the data set used for analysis so readers can work with the data themselves, for a greater understanding of the analysis.
