Abstract
The objective of this paper is to examine the effect of interest rate on the social performance of microfinance institutions (MFIs). This objective is pursued by employing data from 555 MFIs operating in 74 countries. The econometric techniques utilized in this paper have produced robust results suggesting that interest rate boosts the social performance (both the breadth and depth of outreach) of MFIs. The paper explains this outcome with no-alternative hypothesis. Clients of MFIs are mostly poor and, thus, lack access to alternative sources of funding. This compels them to access microcredit at any interest rates.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
