Aren the 15-26% interest rates that the cooperatives lend at still quite high?
Local micro finance institutions around the globe typically have interest rates in the 20% to 30% range. This is mainly due to the high relative cost of individually servicing many smaller loans. Medium-sized and large Guatemalan savings and loan institutions charge interest rates in the range of 14-18%. It is rare to find a savings and loan cooperative in the smaller size range of CODICAP with interest rates as low as we currently have, 18% across the board. Furthermore, Pajebal has the goal of lowering Xe-Ixtamayac’s rate, but this is dependent on the amount of lender support we receive.
