IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-981-16-1788-1_2.html
   My bibliography  Save this book chapter

Boundaries of Microfinance: A Case Study of Microfinance Business of CD Finance

In: Inclusive Finance in China

Author

Listed:
  • Yu Luo

    (Renmin University of China)

Abstract

We will discuss the boundaries of microfinance with the micro loans issued by CD Finance Management Co., Ltd. (hereinafter referred to as CD Finance) in rural areas as an example. Microfinance is fundamentally different from traditional finance in terms of customer positioning, loan limits, credit products, risk control methods, etc., which constitute the upper boundary of microfinance. Microfinance shall determine the loan interest rate that enables its financial self-sufficiency and complies with the social mission and goal, which is the lower boundary that distinguishes it from charity. Adopting the Rosenberg model and the cost-plus pricing method for calculation, we found that the interest rate that should be charged by CD Finance for maintaining a low profit rate (1%) is almost equal to its actual loan interest rate, indicating that CD Finance is basically in the state of financial self-sufficiency.

Suggested Citation

  • Yu Luo, 2021. "Boundaries of Microfinance: A Case Study of Microfinance Business of CD Finance," Springer Books, in: Yan Li & Lin Wang (ed.), Inclusive Finance in China, chapter 0, pages 27-74, Springer.
    • Handle: RePEc:spr:sprchp:978-981-16-1788-1_2
    DOI: 10.1007/978-981-16-1788-1_2
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-981-16-1788-1_2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.