I don't have references at hand but I heard that the interest rate that obligors pay for such loans are quite high (but they would pay even more at standard banks if they gave them money at all). The cost per credit are high too - which is a problem. On the other hand micro credit can be seen as development aid - a sales argument.
All together the concept could be a great field for mutual-funds (I saw one or two).
My question: why is the concept of micro credit not more fashionable (maybe some quant/economic reasons)? Who are the players? Do there exist large mutual funds or other securities to participate in this kind of business? I know that there are platforms - but they are not-for-profit directly to retail customers - right?
EDIT: I just found a guardian article that describes the problems of the concept of micro credit business in South Africa. If I read this correctly then the concept did not help the poor there to get out or poverty.