India: On MFIs and high rates of interest
Written byNeha Viswanathan
The Indian Economy Blog on why Micro Finance Institutions are successful despite high rates of interest. “So, even with these kind of rates, why do people still go to MFI’s? One, because the alternative, the village money lender typically charges a much larger interest rate. Second, the MFI is a more friendly “social” institution. It is a place that your friends- those who you know on a daily basis – are part of too.”
Written byNeha Viswanathan
