Problem

Profit-oriented interest payments

Other Names:
Lack of mutual credit societies
Nature:

Profit-oriented credit exchange systems results in rigidity in credit availability and terms, so that someone needing a loan for hospital bills may pay the same rate of interest as someone obtaining a loan to take a vacation. With a view toward maximizing a secure return on funds, extensive loan restrictions are placed on applicants, excluding needy applicants who cannot meet rigid credit requirements.

Problem Type:
D: Detailed problems
Related UN Sustainable Development Goals:
GOAL 10: Reduced Inequality
Date of last update
16.06.2019 – 23:36 CEST