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Like most different microfinance companies, Compartamos Banco makes relatively small loans, serves a predominatly female clientele, and swimming pools debtors into groups. In 2007, it went public on the Mexican Inventory Exchange, and its preliminary public offering (IPO) raised greater than $400 million. As microfinance interest rates are generally greater than standard banks’, critics have argued that these operations make money off individuals with low incomes. The benefits of microfinance prolong beyond the direct effects of giving folks a supply of capital. Nonetheless, these operations are only available to a variety of the world’s poor, while an estimated 1.7 billion individuals lack access to establishing fundamental monetary accounts.
