2 comments ↓

#1 |

Noor-us-sabbah @ over 2 years ago Senior Editor at FinGad

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I wonder if you could elaborate it a little further..I mean in your next review if you could tell us the difference between the borrowing rate used by the commercial banks and that on loans provided through this micro finance program.

#2 |

Lovephileo @ over 2 years ago WEB CONSULTANT / PASTOR at LIGHT OF THE WORLD CHRISTIAN CENTER

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Good question. Basically, MFI's rate range from 14-16% for three to six mo term loan Or 2-2.66% per mo vis-a-vis Philippine conventional lending such as banking and private financing ranging from 3-5% interest rate /mo . I believe that is the approximate universal rate uses by the MFI's worldwide and traditional banking likewise. However,for me that is not a big deal. Difference in MFI is much more defined not in terms of rate because rate is lessened if you pay it on a very short period of time. But the poor cannot .That's why a big difference is in its mode of payment and the built-in moral considerations geared for the poor that makes a micro entrepreneur, low-level income community, economically-poor make use of his time, capital and potential to the fullest for his initial growth and success.