A subset of borrowers who take genuine commercial-style loans (e.g., $200 repaid over a year to fund a soldering iron and assemble motherboards) can earn 15-20% returns; these are commercially viable and increasingly served by ordinary commercial banks, so this is not the segment microfinance uniquely addresses.

factualpending

Speaker

Michael Munger

Evidence Quote

those often work and pay a high rate of return so if you screen for those those guys can make fifteen or twenty percent per year after repaying the loan

Source

Mike Munger on Microfinance, Savings, and Poverty 04/18/2011EconTalk
Created: 6/17/2026, 10:29:24 AM

My Notes

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