Attempts to measure the depth of outreach in microfinance usually start--and often end--with loan size. But just what is loan size? This paper discusses seven aspects of loan size, each of which affects not only depth of outreach but also profitability. The seven aspects are: term to maturity, dollars disbursed, average balance, dollars per installment, time between installments, number of installments, and "dollar-years of borrowed resources." This paper defines the seven aspects, explains why each one matters, and gives examples of their measurement with data from three Latin American microfinance organizations.
Mark Schreiner is a consultant with Microfinance Risk Management, http://www.microfinance.com.
Journal of Microfinance
Issue and Volume
BYU ScholarsArchive Citation
"Seven Aspects of Loan Size,"
Journal of Microfinance / ESR Review: Vol. 3
, Article 3.
Available at: http://scholarsarchive.byu.edu/esr/vol3/iss2/3