Friday, March 26, 2010

Microfinancing: a meaningful meassure

NEW YORK - SEPTEMBER 26:  Microfinance pioneer...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.

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