Posted: Friday, February 20, 2009 by
Fakhira Khanam
Mandatory savings inclusion in loan price supports loan price increases, principal lent decreases, exclusion is not transparent, savings are not available until loan is repaid, and have opportunity costs, mostly savings are used as last installment. Exclusion supports wealth building, preference on voluntary savings, and microfinance institutes cannot intermediate mandatory savings. Analytical discussion concludes exclusion of mandatory savings from loan price.
Finance / Loans