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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/10614

Title: Estimating the Effective Cost of Borrowing to Microcredit Clients in Ghana
Authors: Afrane, Samuel K.
Adusei, Michael
Adjei-Poku, Bernard
Issue Date: 2015
Publisher: Global Journal of Business Research
Citation: Global Journal of Business Research Vol. 9, No. 1, 2015, pp. 57-66
Abstract: This study estimates the effective cost of borrowing to microcredit clients in Ghana. A simple open-ended questionnaire is administered to 35 microfinance institutions. The study finds that the major costs of borrowing are interest rates and processing fees. The study also finds that the minor costs of borrowing are registration fees, commitment fees, insurance and compulsory savings. In terms of effective cost of borrowing, the study finds that microcredit customers effectively pay at least 8.0 percent interest rate in excess of the stated interest rate.
Description: An article published by Global Journal of Business Research Vol. 9, No. 1, 2015, pp. 57-66
URI: http://hdl.handle.net/123456789/10614
Appears in Collections:College of Arts and Social Sciences

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