What Is Microfinance? Geoff Davis at Stanford

[allgoo19]

This explains it a bit better.

YT search, "Riz Khan - A second look at microfinance"

Video is over 20 miutes but worth your time, specially the second half(critical side).

It's basically the next subprime waiting to happen.

[Warrior1896]

That's true, the interest rates are extremely high based on US standards. You definitely wouldn't want a loan with a 20% interest rate here but in a country where moneylenerders would charge you around 90% and conventional banks will have nothing to do with you if you can't provide collateral (like Bangladesh) a 25% rate is not that exorbitant. You have to consider these issues in a cultural context not through your country's lens.

[GGLebo23]

NO, NO, NO, NOOOO!!!!!!! It is a trap!!! This is bullshit. I was just reading a NYT article about this. They catch you w/ the micro loan part, but then charge you a high ass interest rate. Don't fall for it poorer countries!!! They are just trying to plunge you into deeper debt, poverty, and ulimately SLAVERY!!!!!!!!!!!!

[vamikaB]

explaaains a lot: !