Industry WIKI

In accounting and finance, flat interest rate mortgages and loans calculate interest based on the amount of money a borrower receives at the beginning of the loan. However, if repayment is scheduled to occur at regular intervals throughout the term, the average amount to which the borrower has access is lower and so the effective or true rate of interest is higher. Only if the principa

Solidarity lending is a lending practice where small groups borrow collectively and group members encourage one another to repay. It is an important building block of microfinance.