Adrian Gonzalez

Over-Indebtedness in Microcredit

Recently, MIX has explored portfolio quality problems around the world, a common proxy to measure overindebtedness, and various relevant patterns emerge for the discussion of over-indebtedness in Latin America and around the world.

The New Moneylenders: Are Microcredit Interest Rates Too High?

The problem is that administrative costs are inevitably higher for tiny microlending than for normal bank lending.

Are Microcredit Interest Rates Excessive?

Over the past two decades, institutions that make microloans to low-income borrowers in developing and transition economies have focused increasingly on making their operations financially sustainable by charging interest rates that are high enough to cover all their costs.