Concerns that microcredit interest rates are unjustifiably high don’t find much support in the available data, according to a new CGAP research report.

Equity investments in microfinance have received plenty of attention in the media. But how are investors making their decisions? CGAP recently collaborated with JP Morgan to establish valuation benchmarks for the very first time. CGAP's Xavier Reille says that this partnership identified five ways that MFIs differ from traditional banks – and which suggest that MFIs require a slightly different valuation approach.

CGAP's latest Focus Note takes a look at online lending, and highlights important issues MFIs should consider before borrowing online.