Publicação
Microfinance meets the market
| Resumo: | Microlenders despite subsidies typically charge interest rates much higher than normal bank rates. This paper examines the reasonableness of these interest rates in a trend analysis by collecting and analyzing data from more than 3000 microlenders on their determinants of interest rates from 2007 to 2018. The analysis in conjunction with a background study of the market characteristics indicates that the majority of microlenders have become for-profit microlenders, who operate with reasonable levels of interest rates given their associated costs; if the reasonable level is defined as a level where interest rates yield a yearly profit of ~ 3 percent. |
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| Autores principais: | Nielsen, Tobias |
| Assunto: | Microfinance Financial inclusion Commercialization Microcredit interest rates |
| Ano: | 2023 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Nova de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório Institucional da UNL |
| Resumo: | Microlenders despite subsidies typically charge interest rates much higher than normal bank rates. This paper examines the reasonableness of these interest rates in a trend analysis by collecting and analyzing data from more than 3000 microlenders on their determinants of interest rates from 2007 to 2018. The analysis in conjunction with a background study of the market characteristics indicates that the majority of microlenders have become for-profit microlenders, who operate with reasonable levels of interest rates given their associated costs; if the reasonable level is defined as a level where interest rates yield a yearly profit of ~ 3 percent. |
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