Microfinance Interest Rates

After our discussion about rights based approaches to development, and whether the right to credit and microfinance were legitimate applications of a rights-based approach, Banks Making Big Profits From Tiny Loans in the New York Times.  The article addressed concerns about potentially predatory high interest rates placed on loans targeting the poorest borrowers, and how the label of "microfinance" might be used as a cover for a variety of non-charitable endeavors.  At one point, the article also points out that contributions to provide loans through organizations like Kiva could also be contributing to microfinance institutions charging questionably high interest rates.  To me, this echoed some of our initial readings in the course, that the responsibility to contribute is coupled with an obligation to know how your contribution will be used.