Ethics of microfinance in the perspective of profit as the element influencing microloan interest rate – selected problems
Ethics of microfinance in the perspective of profit as the element influencing microloan interest rate – selected problems

Summary/Abstract: The contemporary image of microfinance activities and their historical achievements, in the opinion of microfinance service beneficiaries, the practitioners of such a form of financial mediation and research workers analyzing these problems, is not perceived as utterly uniform in terms of the conveyed message. This image is created in the space described, on the one hand, by the enthusiasm and hope associated with the activities carried out by Muhammud Yunus and the socio-welfare orientation of microfinance and, on the other, characterized by the atmosphere of doubt, disappointment and distrust referring to the practice of microfinance entities and the actual image of microfinance. The presented evaluations and opinions, reviewing the status and perspectives underlying microfinance development, concentrate frequently on ethical issues, referring to the assumptions of microfinance activities and their practical aspects, which itself can raise numerous doubts in terms of moral issues. The ethical and moral dilemmas can be combined in this respect with for example the problem of the choice of a business model for running microfinance activities, taking advantage of public, and thus also limited, financial resources typical for this type of activity, or the ethical justification of the consent to enter into economic relations with the poor, generating effects taking the form of profit earned by a micro-lender. Having the above in mind, the objective of this study was defined, i.e.: a) to answer the question – whether, from the perspective of microfinance activities ethics, there is a justification for profit included in a microloan price and b) to present statistics characterizing this price parameter and describing the global practice of microfinance activities. The realization of an objective specified in the above way, is based on literature studies, the analysis of statistical data and the author’s observations of practical activities performed by microfinance entities.

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