Comment by oisino

10 years ago out of college I helped set up some microfinance banks in Coffee producing communities in Honduras. At first your taken aback that people are paying 40%+ annual interest rates on small loans for these banks. But when your in the communities talking to people you realize their opportunity costs are like 400%+. Example is in most coffee producing communities in Central America farmers have to sell their products before they even grow them for 4-10x bellow the market rates if they just waited and banded together as co-op. Their issue is no access to financial products and they are substance farmers with no option but sell to coyotes to get money for food. In this world micro finance is a game changer in their quality of lives for it creates options