Brett asked me why are microfinance interest rates so high? Turns out there has been lots of good discussion on this, the first is that “ADB”:http://microcapitalmonitor.com/cblog/index.php?/archives/284-Why-are-Microfinance-Interest-Rates-so-High-Asian-Development-Bank-Paper-Explains.html says rates at 30%-70% are effectively covering the high operational costs. It takes people to manage these microloans, so the banks don’t operate at a profit in effect, they are just covering.
While it might be nice to cap rates, this just reduces credit inflow. Miracles of competition really but the infrastructure cost of administering a $500 loan is probably the same as a $5,000 or a $50,000. Certainly true in the developed world.
And “UNCDF.org”:http://www.uncdf.org/english/microfinance/pubs/newsletter/pages/july_2004/voice.php has a great definition of what too high an interest rate is. Basically, says that covering the banks cost is the minimum set.
![sec: Passkeys are everywhere how do I add to 1Password and Apple Keychain]({"aperture":"0","credit":"","camera":"","caption":"Photo by Oleksandr P on <a href="https://www.pexels.com/photo/person-with-keys-for-real-estate-7599735/" rel="nofollow">Pexels.com</a>","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"person with keys for real estate","orientation":"0"})
![net: Argh Google Workspace Price increases keep coming]({"aperture":"0","credit":"","camera":"","caption":"Photo by ATBO on <a href="https://www.pexels.com/photo/black-padded-rolling-armchair-beside-desk-245219/" rel="nofollow">Pexels.com</a>","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"black padded rolling armchair beside desk","orientation":"0"})
![av: MOONDROP littlewhite and Variations do rock]({"aperture":"0","credit":"","camera":"","caption":"Photo by Andrea Piacquadio on <a href="https://www.pexels.com/photo/woman-in-white-button-up-shirt-while-listening-to-music-3776839/" rel="nofollow">Pexels.com</a>","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"woman in white button up shirt while listening to music","orientation":"0"})
![AV: Truly great Qudelix 5K with MOONDROP Variations Auto-eq (and Schitt Magni Soundsource shutoff)]({"aperture":"0","credit":"","camera":"","caption":"Photo by Shelagh Murphy on <a href="https://www.pexels.com/photo/grayscale-photo-of-people-raising-their-hands-1666816/" rel="nofollow">Pexels.com</a>","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"grayscale photo of people raising their hands","orientation":"0"})
![tech: Synology NAS performance is 200 MBps and 500/700 IOPS good?]({"aperture":"0","credit":"","camera":"","caption":"Photo by Pixabay on <a href="https://www.pexels.com/photo/close-up-of-electric-lamp-against-black-background-248747/" rel="nofollow">Pexels.com</a>","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"close up of electric lamp against black background","orientation":"0"})
![Tech: Review list and need for Gateron Melodics]({"aperture":"0","credit":"","camera":"","caption":"Photo by Pixabay on <a href="https://www.pexels.com/photo/brass-ornate-vintage-key-on-black-computer-keyboard-39389/" rel="nofollow">Pexels.com</a>","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"brass ornate vintage key on black computer keyboard","orientation":"0"})
