IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-981-4560-61-0_21.html
   My bibliography  Save this book chapter

Lower the Interest Burden for Microfinance

In: Proceedings of the International Conference on Managing the Asian Century

Author

Listed:
  • Carrie Lui

    (James Cook University, Cairns Campus)

  • Insu Song

    (James Cook University, Singapore Campus)

  • John Vong

    (James Cook University, Singapore Campus)

Abstract

MFIs have a high interest rate burden due to the small amount per transaction of microcredit and inevitably high operating cost per transaction. To ensure financial viability and to expand the depth and breadth of their operations, MFIs have to adopt cost recovery interest rates on microcredit, hence, MFIs have to charge interest rate high enough, usually substantially higher than the bank loan risk free interest rate. The major factors determining the interest rate on microcredit are the cost of funds, operating costs, loan loss cost and capital for business expansion. To illustrate the impacts of the above factors on interest rate, we present a summary of the current cost structures of microfinance institutes (MFIs) in three Southeast Asia countries, Cambodia, Vietnam, and Indonesia. Then, we review existing studies for the roles of mobile technologies for lowering the interest burden.

Suggested Citation

  • Carrie Lui & Insu Song & John Vong, 2013. "Lower the Interest Burden for Microfinance," Springer Books, in: Purnendu Mandal (ed.), Proceedings of the International Conference on Managing the Asian Century, edition 127, chapter 21, pages 185-191, Springer.
    • Handle: RePEc:spr:sprchp:978-981-4560-61-0_21
    DOI: 10.1007/978-981-4560-61-0_21
    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.

    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:978-981-4560-61-0_21. 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.