Microloan Sharks
Commercial microfinance institutions (MFIs) must calculate two bottom lines: alleviating poverty for clients and also generating profits for investors. To achieve the latter goal, some MFIs charge their impoverished clients exorbitant interest rates. The recent Banco Compartamos IPO in Mexico raises a red flag, demonstrating how easily well-intentioned MFIs and their investors can shift from microlending to microloan-sharking.
Subscription Required
You must be a subscriber to read this article in its entirety. Access to Stanford Social Innovation Review full text online is restricted to paid print subscribers.
Subscribers
To login, please enter your login and password below. Login instructions were sent to the email address you provided upon receipt of payment
*Forgot your username or password? Click here
*Other problems logging in? Email
Not a Subscriber?
Subscribe and you will receive:
* Unlimited access to online articles. You will be emailed instructions for online access upon receipt of payment
* Delivery of the quarterly print magazine delivered to your home or office
* Full access to subscriber-only portions of the SSIR Web site
* Special discounts to Jossey Bass, Social Enterprise Alliance, Fieldstone Alliance
* Exclusive invitations to events and web seminars
Subscribe Now
Subscriber Login
Post a Comment
