Rural–urban financial inclusion: Implications on the cost sustainability of microfinance lenders

Md Aslam Mia, Sunil Sangwan, A. H. M. Belayeth Hussain, Nurhafiza Abdul Kader Malim · 2021 · Managerial and Decision Economics

Summary. Microfinance institutions typically avoid rural lending because they believe it costs more than urban lending. This study analyzed data from 1,729 microfinance institutions worldwide between 2008 and 2018. The findings contradict conventional wisdom: rural lending is actually more cost-efficient than urban lending, even when accounting for different measurement approaches and potential statistical biases.

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Mia, M. A., Sangwan, S., Hussain, A. H. M. B., & Malim, N. A. K.. (2021). Rural–urban financial inclusion: Implications on the cost sustainability of microfinance lenders. Managerial and Decision Economics. https://doi.org/10.1002/mde.3498

@article{mia-2021-rural-urban-financial-inclusion-implications,
  title   = {Rural–urban financial inclusion: Implications on the cost sustainability of microfinance lenders},
  author  = {Md Aslam Mia and Sunil Sangwan and A. H. M. Belayeth Hussain and Nurhafiza Abdul Kader Malim},
  journal = {Managerial and Decision Economics},
  year    = {2021},
  doi     = {10.1002/mde.3498},
  url     = {https://doi.org/10.1002/mde.3498}
}

TY  - JOUR
TI  - Rural–urban financial inclusion: Implications on the cost sustainability of microfinance lenders
AU  - Md Aslam Mia
AU  - Sunil Sangwan
AU  - A. H. M. Belayeth Hussain
AU  - Nurhafiza Abdul Kader Malim
JO  - Managerial and Decision Economics
PY  - 2021
DO  - 10.1002/mde.3498
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Details

DOI: 10.1002/mde.3498
Countries: Malaysia, Bangladesh, India
Regions: Asia
Categories: funding, regional-innovation-systems
Added: 2026-04-28