Microfinance loan portfolios have been growing at a 30% CAGR since 2005, according to Mix Market data. They have figured out how to service low-income clients more efficiently with operating margins of 10% to 15% and effectively with loan portfolios of PAR >30 at 5% on average (the portion of the portfolio deemed at risk because payments are more than 30 days overdue) and write off ratios of less than 2%. Furthermore, it requires time patience and deep knowledge of the business environment and customers. The pros and cons to starting as an NGO can be debated, with a number of factors to consider in context of the regional political, social and economic climate. There are unique factors to be considered for each region, country, state and village. It has proven to be a successful strategy for Xac Bank and the region and customers it serves. - See more at: http://www.bamboofinance.com/blog/xac-bank-successfully-attracts-strategic-buyer-looking-to-grow-responsibly/#sthash.JTI4atjo.dpuf
