It's ok if your costs are that high (70% of 50US$ is just 3.5US$ which even with a very little salary is hardly enough to do due dilligence). Usually the rate o

It's ok if your costs are that high (70% of 50US$ is just 3.5US$ which even with a very little salary is hardly enough to do due dilligence). Usually the rate of return for micro-entrepreneurs is far above 100% so it's still a good deal. The alternative would be not to give any loans which would hurt the poor most. If you are interested in this topic you check out my master thesis of 2004 (if you don't mind my crappy English) here: http://www.scribd.com/doc/92714/Microfinance http://www.scribd.com/doc/92714/Microfinance It covers exactly that topic.