Banking and Finance Law Commons^™

South Africa's National Credit Act: A Possible Model For The Proper Role Of Interest Rate Ceilings For Microfinance, Megan Whittaker

Northwestern Journal of International Law & Business

This comment will discuss the current debate regarding the proper role of interest rate ceilings in microfinance and how the South African National Credit Act should serve as a model for future studies of microcredit systems in developing countries. Part II will discuss the controversy over interest rate ceilings in microfinance, setting concerns regarding the effect of ceilings on the viability of microfinance institutions against the need to protect marginalized consumers from predatory lending. Part III will analyze various alternatives to usury laws that microfinance experts have proposed, with an emphasis on supervisory and regulatory systems as the most promising …