Exact(24)
"The returns on a student loan take longer to materialize and require larger amounts than the typical microfinance loan".
Thanks to a microfinance loan, she was able to buy a basic handset and a roof-mounted antenna to ensure a reliable signal.
Bandhan, a no-frills company based in West Bengal, now has over 4m borrowers and the largest microfinance loan book in the country.
That farmer then applied for a microfinance loan to buy his own precision leveller, and is charging a fee to neighbouring farms to level them".
The administration and servicing costs on a microfinance loan, they estimate, are five or six times the expense, proportionately, on a standard bank loan.
As in medicine, a J-PAL trial, at its simplest, will randomly divide a population into two groups, and administer a "treatment" — a textbook, access to a microfinance loan — to one group but not to the other.
Similar(36)
Microfinance loans – or microcredit – are small.
Some argue that demand for microfinance loans is elastic: borrowers respond strongly to changes in the interest rate.
It might make sense to offer microfinance loans to entrepreneurs to buy netbooks and provide information services.
Deutsche Bank estimates the global demand for microfinance loans at about $250 billion, 10 times the amount that has been lent.
The company uses a proportion of its revenues to provide low-cost microfinance loans to small businesses.
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