Economics
Microfinance Interest Rates and the Mission Drift Debate
Quick fact
Some microfinance institutions charge annual interest rates of 30% to over 70%, far above conventional bank loans, yet they are often the only credit source for the poor.
Why this is interesting
Microfinance promises to lift people out of poverty, yet some micro-loans carry interest rates higher than typical credit cards. How can this be, and does it still help?