Microfinance and Rate of Interest
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Title: Microfinance and Rate of Interest

Essay Details:

Subject: Business
Author: George M
Date: April 23, 2015
Level: University
Grade: A
Length: 3 / 808

Essay text:

Subsidy: Khushhali Bank receives 20% and Grameen Bank 30% of markup. 2. High rate of interest: Yugoslavian banks receive 70% and Latin American banks 50% of markup. ? Till 1980’s the trend was to provide subsidized credit. ? At that time rate of interest less then rate of inflation. ? And effective rate of interest is less the 0% ? After 1980’s the trend has changed. ? Now banks charge high rate of interest to cover the cost of lending. ? There is an argument that poors problem is of access but not of rate of return. ? And it is said that any change in Rate of return “R” will not affect borrowing...

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