Download This PaperFair Microfinance Loan Rates
13 Pages Posted: 1 Mar 2018
Date Written: February 12, 2018
Abstract
This paper uses a reduced form credit risk model to determine fair lending rates for micro-finance loans. A fair lending rate is defined to be that rate which makes the loan have a net present value of zero to the lender, after the inclusion of the lender’s costs of issuing and monitoring the loan.
Suggested Citation: Suggested Citation
Jarrow, Robert A. and Protter, Philip, Fair Microfinance Loan Rates (February 12, 2018). Available at SSRN: https://ssrn.com/abstract=3126861 or http://dx.doi.org/10.2139/ssrn.3126861
Robert A. Jarrow (Contact Author)
Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )
Department of Finance
Ithaca, NY 14853
United States
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