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Like most other microfinance firms, Compartamos Banco makes comparatively small loans, serves a predominatly female clientele, and swimming pools debtors into groups. In 2007, it went public on the Mexican Stock Trade, and its initial public offering (IPO) raised more than $400 million. As microfinance rates of interest are usually greater than standard banks’, critics have argued that these operations make money off individuals with low incomes. The benefits of microfinance lengthen past the direct effects of giving people a source of capital. Nonetheless, these operations are solely out there to a variety of the world’s poor, whereas an estimated 1.7 billion individuals lack access to establishing basic financial accounts.
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