Profit-oriented interest payments

Other Names:
Lack of mutual credit societies

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.

Related UN Sustainable Development Goals:
GOAL 10: Reduced Inequality
Problem Type:
D: Detailed problems
Date of last update
04.10.2020 – 22:48 CEST