Handbook of Key Global Financial Markets, Institutions, and Infrastructure

Chapter 44

MicrofinanceCosts, Lending Rates, and Profitability

R. Mersland^* and R. Øystein Strøm^†

^*University of Agder, Kristiansand, Norway

^†Oslo and Akershus University College of Applied Sciences, Oslo, Norway

Outline

Introduction

Introduction to Microfinance

Microfinance in History

The Diffusion of Microfinance

The Diversity in MFI Characteristics

Effects of Microfinance

Recent Critics of Microfinance

High Profitability?

Outreach: The MFI’s Social Mission 

Conclusions

References

Further Reading

Relevant Websites

Introduction

After Muhammad Yunus and Grameen Bank received the Nobel Peace Prize in 2006, microfinance became a universal and well-known concept. Generally, the attention has been positive and the potential for microfinance ...