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What Is Microfinance
1. What is microfinance? Trockman Microfinance Initiative Industry Analysis Team – Economics February 25, 2009
2. Report Overview Introduction– Why microfinance? Microfinance – What is microfinance? Microcredit – What is microcredit? Debate– Is microfinance a viable long-term solution? Conclusion – What feedback can TMI offer?
3. Introduction: Diminishing Returns to Scale as Justification Output Marginal product of capital (mpk) decreases as capital increases Returns are much greater at the low end of the scale, meaning that small amounts can be lent at high costs and still be efficient y=zf(k) mpk mpk Capital
40. Administrative: loan officers’ time, personalized, small loans.Source: Brigit Helms and Xavier Reille, Interest Rate Ceilings and Microfinance, The Story So Far, based on data prepared by Sanjay Sinha.