Arthur D. LittleArthur D. Little

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Microfinance on the Rise

Microfinance on the Rise

A Socially Inpsired Business Model about to Emerge into an Asset Class

Microfinance has already reached millions of households worldwide. This practice of extending small loans to very poor people for self-employment projects does not limit itself to third world countries, but can also be found increasingly in European countries. Too often lending to the financially challenged is being confused with the bad mortgage dilemma in the US. This is highly unjustified, since most microfinance institutions (MFIs) actually surpass the repayment rate achieved by traditional lending institutions and exhibit promising risk/return ratios. As a result of the unmet demand for microfinance which is estimated to stand at around $250 billion, microfinance looks set to emerge as a significant new asset class.

Released: November 2008

Download File ADL_Microfinance_on_the_Rise_02.pdf (.PDF, 610 Kb)

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