Microfinancing: a meaningful meassure

Image by Getty Images via Daylife

Following a previous post in which the need to meassure everything is discussed, I found a comment relating that Mohamad Yunus uses a simple rule to evaluate the worthiness of a microfinance institution:

• An interest margin less than 10%=green zone;
• An interest margin between 10%-15%=yellow zone;
• An interest margin greater than 15%=red zone/loan shark

There are simple rules that can provide valuable insights. Not everything must be measured!. Happy to hear your thoughts.