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Making sense of microcredit interest rates : Explication raisonnee des taux d'interet utilises pour le microcredit (Французский)

Why do microfinance institutions (MFIs) charge such high interest rates to the poor? This brief highlights some of the key issues related to microcredit interest rates and the role of donors. Microcredit interest rates are set with the aim of providing viable, long-term financial services on a large scale. MFIs must set interest rates that cover all administrative costs, plus the cost of capital (including inflation), loan losses, and a provision...
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