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