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What determines microcredit interest rates?

Dorfleitner, Gregor ; Leidl, Michaela ; Priberny, Christopher ; von Mosch, Jacob



Abstract

High microcredit interest rates cause fierce debates among practitioners, scholars and even the general public. To objectify these discussions this article investigates determinants of microcredit interest rates by using a worldwide data set of 712 microfinance institutions. We examine how cost factors, gender, regulation, lending methodology, and organizational type affect microcredit interest ...

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