Micro Finance % limit?

SantiagueroRD

Bronze
Apr 20, 2011
766
1
38
Good afternoon, Does any one know the limit on the percentage that may be charged on a personal loan? For example I was told that 12% a month was normal.
 

melphis

Living my Dream
Apr 18, 2013
3,489
1,676
113
The local loan shark only charges 10% per month or about 140% per year compounded.
12% a month is ridiculous.
 

Matilda

RIP Lindsay
Sep 13, 2006
5,485
338
63
It depends on if it is secured on unsecured and what the loan is for. NGO type micro loan companies charge from 3% to 6% but unsecured loans from loan sharks can be up to 30%.

Matilda
 

dv8

Gold
Sep 27, 2006
31,266
363
0
you mean personal loans from loan sharks? trust me, things can get much worse than 12% a month.
 

dv8

Gold
Sep 27, 2006
31,266
363
0
personal loans with loan sharks are not regularized. the worst i have heard was 20% every two weeks.

micro loans to small businesses (MIPYMES) are regularized providing they come from financial institutions. state, banks and even international entities offer such credits. but for individual loans for personal use all bets are off.
 

JasonD

Bronze
Feb 10, 2018
1,009
2
38
Most Dominicans don't care, they just hand their Debit Cards to the prestamista. What a way to live?