What kinds of repayment rates do microfinance institutions get?
Most microfinance institutions around the world have repayment rates that are incredibly high, around 95% or higher. This attests to the creditworthiness of poor borrowers around the world, despite not having collateral for their loans. For most poor people, a microcredit loan represents someone putting faith in them and it is their chance to make a better life for themselves. Invariably, most microcredit borrowers want to pay back their loans, prove their creditworthiness, and create a good credit history for themselves.
