Honduras small businessment complain about microcredit rates

Managers of small business firms in Honduras are complaining about the difficulty of getting credit at reasonable rates. Financial organizations say the credit is there and the process isn't onerous.

Thursday, July 24, 2008

However, interest rates for this sector are between 19 and 36 percent per year. Some financial institutions charge interest according to the outstanding balance, but in other cases rates are fixed.
Those who manage micro-credits say the interest rates vary with the amount borrowed and are also a function of the risk they take when they lend the money.
Micro-credit is an important source of financing in Honduras. It contributes to national development and responds to the limits and the few opportunities available to most of the economically active population.



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