Interest rates in microfinance - abuse or necessity?

Microfinance has very often been criticized due to its high interest rates. The interest rates in microfinance are indeed generally higher than those of the banks.

Are these interest rates which seem exorbitant justified? Is a reduction achievable for the granters of credit? Do clients get value for money? What’s a fair interest rate? How is the microfinance sector evolving?

Aldo Moauro, financial economist, has directed his professional preparation and experience towards SMEs and microfinance. He is a founder member and the Executive Director of MicroFinanza Rating, an international rating agency specialised in Microfinance. Before joining the company, he has worked for 4 years as microfinance portfolio manager at ETIMOS, an international financial consortium with a social mission.

Marek Hudon holds a Ph.D. in Economics and Management Sciences and a Master in Philosophy. He is currently Professor at the Solvay Brussels School of Economics and Management (ULB). He has initiated the European Microfinance Programme (EMP), a one-year Master's Degree in microfinance co-organised by four European universities, and is still scientific coordinator of this Master. He is also co-director of the Centre for European Research in Microfinance (CERMi) and the Centre d'Etudes Economiques et Sociales de l'Environnement (CEESE).

Interest Rates in Microfinance - Abuse or necessity - conference report.pdf