Sustainable Food Value Chains Knowledge Platform

Interest Rates and Self-Sufficiency


This study guide was first published as a GEMINI technical note by ACCION International. It was written by Katherine Stearns. It is a straightforward and easy to follow exposition of the role of interest rates from a borrower’s and a lender’s perspective. It explains the differences between nominal, effective and real interest rates and shows how each of these can be calculated. The guide also examines how lenders can establish interest rates and fees structures to ensure self-sufficiency of the institution. The study guide ends with a set of questions and problems which can be worked through to reinforce the points covered in the lessons.

Countries: Non-country specific
Commodities: Non-Commodity specific
Topics: Financial services
Personal author: Katherine Stearns
Publisher: Rural Finance & Investment Learning Centre (RFILC)
Category: Field-based materials
Level Suitability: Intermediate, Introductory
External resources: