MFIs 'must reveal complete financial costs to clients'
Microfinance institutions (MFIs) should aim for transparency when it comes to supplying clients with information about charges for the products they sell.Microfinance institutions (MFIs) should aim for transparency when it comes to supplying clients with information about charges for the products they sell.
This is according to Executive Secretary of the Association of Microfinance Institutions in Rwanda Rita Ngarambe, who claimed clients should be told the terms and conditions of loans, the New Times reports.
Similarly, she suggested MFIs should divulge the application of late fees and penalties, as well as the implications of interest rates.
This will help to ensure consumers are able to make sound financial decisions as they will have access to all the required information.
Ms Ngarambe said MFIs have to ensure they "communicate a product's true total cost, along with its applicable terms and conditions, in a way that clients can understand, given educational and language considerations".
Last month, the Commercial Bank of Rwanda held a three-day workshop to help small and medium-sized enterprises improve their financial skills, which could help them to grow and develop.