Towards reasonably priced microcredit: analysing Egyptian NGO-MFIs' cost structure and financial performance

Khafagy, Amr ORCID: 0000-0001-8976-6405 and Mersland, Roy (2013) Towards reasonably priced microcredit: analysing Egyptian NGO-MFIs' cost structure and financial performance. Enterprise Development and Microfinance, 24 (4). pp. 328-345. doi:10.3362/1755-1986.2013.030

Text (Peer reviewed version)
6618 Khafagy (2013) Towards Reasonably Priced Microcredit.pdf - Accepted Version
Available under License All Rights Reserved.

Download (2MB) | Preview


Interest rates have always been a much debated topic in microfinance, as the prices paid by low-income clients tend to be higher than conventional banks' rates. In Egypt, microcredit rates are increasingly being criticized and viewed as unreasonably high. The study analyses the effective interest rates charged by Egyptian NGO-MFIs compared with commercial banks' rates, and using time series cross-sectional regression models, the study examines the main determinants affecting NGO-MFIs’ portfolio yield and operating expenses in order to identify prospects for providing reasonably priced credit for low-income Egyptians. Findings suggest that, as the average portfolio yield for NGO-MFIs in Egypt has exceeded the global average portfolio yield, there is a clear potential for providing microcredit at lower prices, and much can still be done towards more operational efficiency.

Item Type: Article
Article Type: Article
Additional Information: © Practical Action Publishing, 2013. The definitive, peer-reviewed and edited version of this article (Version of Scholarly Record) is published in Enterprise Development and Microfinance, 24 (4). pp. 328-345.
Uncontrolled Keywords: Microcredit; Interest rates; Egypt; Portfolio yield; Operational efficiency
Subjects: H Social Sciences > HA Statistics
H Social Sciences > HB Economic Theory
H Social Sciences > HC Economic History and Conditions
H Social Sciences > HG Finance
Divisions: Schools and Research Institutes > Countryside and Community Research Institute
Research Priority Areas: Place, Environment and Community
Depositing User: Imogen Young
Date Deposited: 12 Mar 2019 16:08
Last Modified: 04 Feb 2022 14:15

University Staff: Request a correction | Repository Editors: Update this record

University Of Gloucestershire

Bookmark and Share

Find Us On Social Media:

Social Media Icons Facebook Twitter Google+ YouTube Pinterest Linkedin

Other University Web Sites

University of Gloucestershire, The Park, Cheltenham, Gloucestershire, GL50 2RH. Telephone +44 (0)844 8010001.