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i) Grants to help pay for staff training
ii) Soft loans from donors - A donor might prefer to support a micro lender by
making a loan to be repaid in twenty years at an interest rate of 1 percent per
year
iii) Tax holidays from the government
iv) Loan guarantees – larger institutions acting as guarantors of loans made to
micro finance institutions at no cost
v) Soft equity – equity without conditions attached
vi) The assumption of exchange rate risk – the financier does not demand for
compensations on a devalued currency – if the loan was foreign currency
denominated
Kavungya answered the question on March 26, 2019 at 10:35
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