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What factors influence the divergence in interest rates between microfinance and traditional banks?
January 4, 2024
How do interest rates in microfinance compare to traditional banking rates?
Microfinance interest rates often surpass traditional banking rates due to higher operational costs, risks associated with serving marginalized clients, and smaller loan sizes. The emphasis on reaching underserved populations contributes to the variance in interest rates.
Tags : Microfinance , Interest Rates , Banking Comparison