Microfinance: Getting Money to the Poor or Making Money out of the Poor?
© 2007 Finance & the Common Good / Bien Commun
Microfinance institutions are currently experiencing very high repayment rates of between 95 to 99 percent. Coupled with growing loan sizes by clients, these institutions are even making profits. No wonder there seems to be a good reason for the world to celebrate the microfinance revolution. It is not necessarily wrong to reduce poverty and make some money on the side. The question however arises as to whether that is indeed what is happening with microfinance.