The document discusses how the costs of providing microloans varies significantly depending on the loan size, with smaller loans having much higher operating costs. It suggests a range of loan products are needed to serve different market segments, and that the common benchmark of a 15-20% operating cost ratio is only appropriate for larger loans. Smaller loans require higher prices to cover costs. If interest rate caps were imposed, it would force some high-cost small loan products to disappear, reducing availability for some borrowers. Reaching the majority of potential microfinance customers requires understanding how loan size impacts costs and using appropriate models like self-help groups.