The truth is that the comparison isn't between 30% and the 6.5% you get on your mortgage, or the "outrageous" 18.99% you're charged for your credit card. The comparison is between being charged 30% interest and not getting the money at all. The point of microfinance is to provide access to credit to those who would otherwise not be able to get it.

And if you compare that 30% to facilities available to low income people here in the US, it looks pretty good; payday loans have APRs in the 2000%+ range.

Yeah, its not really that outrageous. Like the OP in another post pointed out, you have to compensate for exchange rates, banking fees, transfer fees, and economic stability. These people probably couldn't get a loan from their local banks even with ridiculous interest rates. That also doesn't make them bad investments. I didn't look real hard for updated numbers, but this artcile says that in 2008, 97% of micro-loans through Kiva were being paid back.

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