Are the microlenders lending rates low?

Ad Majorem.....Wealth Builders

The microfinance lending rates are not cheap.  The lending practice started by Mohammad Yunus in Bangladesh, must have their origins in India - the Bombay lenders.  A Japanese ADB employee computed to me that the effective rate of a 90 day Bombay loan, paid daily is about l200 per cent.  There is no way that a borrower can get of poverty.

The 20% rate for 3 months of microfinance would be l20 % in one year.  This is to cover the huge expense for collecting and servicing the loan and risk of non repayment.

We at majorem charge only l8% per annum or l.5%  per annum.  Well Majorem Lending loans are secured. It is because is against memorial park lots.

Low interest loan is a great resource for wealth builder