Why such a low interest rate?
We make 15% profit on the initial loan amount after 18 months. For-profit businesses that give similar small loans in Uganda make anywhere from 40% to 80% after 18 months. These rates are so high because risk, inflation, administrative fees, and demand for microfinance are all higher in Uganda than in richer countries.
Our main goal is to give medical care to people in remote areas. We also want to give an opportunity for someone to start a small business, and we don't want to saddle our partners with too much debt.