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There is a good book on this topic by Muhammad Yunnus - Banker to the Poor: Micro-Lending and the Battle Against World Poverty, https://www.amazon.com/Banker-Poor-Micro-Lending-Against-Pov....

Overall, it is difficult to be even stay in business let alone profitable due to structure of how interests work at that income level due to most not paying back on their loans.




I thought the point of Yunus's book/movement was that microloans were safe because people, on the whole, DID pay back the loans?


If I remember correctly it was set up in Bangladesh. You are correct people did pay back the loans but it required much higher interest rates e.g., 60%, due to small size of the loans and having to factor in those who wouldn't pay back.




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