Paper
Seven Aspects of Loan Size
What is loan size to profitability and outreach?
28 pages
Attempts to measure the depth of outreach in microfinance usually startand often endwith loan size. But just what is loan size? This paper discusses seven aspects of loan size, each of which affects not only depth of outreach but also profitability.
The seven aspects are: term to maturity, dollars disbursed, average balance, dollars per installment, time between installments, number of installments, and dollar-years of borrowed resources.
This paper defines the seven aspects, explains why each one matters, and gives examples of their measurement with data from three Latin American microfinance organizations.
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