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Microfinance: “Good Deeds” Paying Off

| Wednesday March 1st, 2006 | 0 Comments

logo-ft-big.gifMore interesting news from the Financial Times (via WBCSD) about the win-win payoff being enjoyed in the microfinance sector. According to the article, what was once considered a low-scale “good dead” is now becoming a hot investment opportunity. The rise of firms like prosper.com comes to mind, as well as the sizable microfinance programs that major lenders like Citibank are now involved with. Interestingly, though returns maybe somewhat lower than other forms of lending, risks are far lower than one might expect. From the article: “It turns out that poor rural women are better credit risks than many companies, meaning that default rates are low. Accion [A major microfinance find ]reports a historical repayment rate of 97 per cent. No Accion or Calvert investors have lost money to date.”


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