Development of a starter loan in microfinance : operational parameters /

This paper appraises the possible pricing and cost parameter values of a starter loan, and evaluates its profitability for a microfinance institution willing to implement it in a transition economy. The conceptual design of this starter loan and its economic justification have been studied in a prec...

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Bibliographic Details
Main Author: Crombrugghe, Alain de
Other Authors: de Pret, Valentine
Format: Book
Language:English
Published: Namur : The University of Namur. Faculté des Sciences Economiques, Sociales et de Gestion, 2003
Series:Working papers. Research series (The University of Namur. Facultés Universitaires Notre-Dame de la Paix) no. 246
Subjects:
Description
Summary:This paper appraises the possible pricing and cost parameter values of a starter loan, and evaluates its profitability for a microfinance institution willing to implement it in a transition economy. The conceptual design of this starter loan and its economic justification have been studied in a preceding paper. A detailed analysis of evidences a strong timing mismatch between the application of expenses and the perception of revenues on the loan portfolio. Guidance is thus offered on how to overcome potential difficulties in setting the quantitative parameters of the new product.
Physical Description:48 p.