Posted by: Micol Pistelli
This week, we focus on one of the most important and debated social performance indicators: the cost of services to clients. To date, microfinance loans’ true prices have never been publicly reported and there is a lack of information about how MFIs calculate their Effective Interest Rate (EIR) and Annual Percentage Rate (APR). To address this concern, two initiatives – MFTransparency and the Smart Campaign (formerly known as the Campaign for Client Protection in Microfinance) – have been created with the aim to promote more transparent and fairer pricing in the industry.
Stay tuned for an interview with MFTransparency to learn about their efforts to establish the industry standard for pricing disclosure as well as the most recent updates from the Smart Campaign.
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