Microcredit, once touted as a poverty-eradication solution, has been crippled by interest rates ranging from 30 to 200% in Mexico, India, and Bangladesh, making it impossible for most poor borrowers to repay their loans.
The Micro Debt
The myth of microcredit as a solution to eradicate poverty is debunked, as excessive interest rates of 30 to 200% render it challenging for many impoverished borrowers in Mexico, India, and Bangladesh to settle their debts.
