The pro-interest advocates argue that the microfinance institutions must rely on high interest rates to be able to carry out their objectives.

Question

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Microfinance institutions often serve clients who are not served by traditional banks, and they face higher costs and risks. High interest rates can be necessary for these institutions to cover their operational costs and risks, and to ensure their sustainability while fulfilling their objectives of providing financial services to underserved populations.

The Pro-Interest Advocates Argue That the Microfinance Institutions Must Rely