MICROFINANCE FOR PROFIT
A Global Study
Microfinance has traditionally been associated with low-value lending to small, informal businesses. These loans are usually small, short-term and unsecured. Microfinance institutions (MFIs) find it necessary to charge relatively high interest rates to cover their operational costs. Often loans are disbursed by way of a group or solidarity lending system, which exerts peer pressure on individual members. This is one reason why repayment rates in the microfinance sector are high.
Due to the lack of credit bureau data, most MFIs rely on their loan officers to form close relationships with their clients, where a borrower's character and their financial position will be taken into account in determining their ability to repay.
Director of Councils and Client Relations
Phone: +353 (0) 87 173 6297