Identifying an optimal lending rate for the sustainable development of microfinance institutions in Vietnam

Abstract

The paper discusses methods of identifying the optimal lending rate for microfinance institutions and focuses on the application of internationally-acclaimed CGAP (Consultative Group to Assist the Poor) model to identifying the lending rate for microfinance institutions. The paper also aims at providing a scientific overview that may help readers understand microfinance institutions, their operations in Vietnam and ways of applying CGAP lending rate identification model to local conditions and offer one more option to policy makers and other institutions. The research employs quantitative methods and data presented by M7 group at the workshop ?Identification of Sustainable Interest Rate for Microfinance Institutions? held in H? N?i in March 2012.