Implementing Pricing Transparency in Microfinance
Microﬁnance has long been a highly transparent industry, and rightly proud of it. We share a wide variety of ﬁnancial indicators about our MFIs. Unfortunately, the true price of microﬁnance loan products has never been accurately measured nor reported. For an industry born to “displace the moneylenders” by providing low-cost credit to the working poor, this is hard to imagine and even harder to explain.
In addition, non-transparent pricing is a serious market imperfection that impedes efﬁciency, sound management decisions, and healthy consumer choice.
Click here to read the e-MFP article