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At an average of 22.3% annual interest rate, microcredit schemes appear to be a ripoff.


20-25% ain't bad when you don't have good ratings data. Look at Wonga et al in the UK - 4000% was the highest one I think. (they're called "payday" loans - they give you up to £1,000 for up to 30 days. Most people who use them end up in a debt spiral, unsurprisingly.)




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