Modern microfinance schemes, even in some Muslim countries, dominated by interest-based products, originally meant to provide access to credit for the poor, may end up further impoverishing them.

Question

Quizplus · Accepted Answer

Many modern microfinance schemes, despite their initial goal of providing access to credit for the poor, often involve high interest rates and stringent repayment conditions. This can lead to a cycle of debt for the borrowers, potentially worsening their financial situation rather than improving it.

Modern Microfinance Schemes, Even in Some Muslim Countries, Dominated by Interest-Based