UNDP Microfinance Assessment Report: Lebanon

The paper states that microfinance is, so far, a difficult sell in Lebanon. It says that in Lebanon:

• The demand aspect for the microfinance products is unclear;
• Most stakeholders who are not involved in microfinance are negative, continually questioning the suitability of the initial loan size.

It argues that even microfinance practitioners are only cautiously optimistic about client growth. However, the resistance to microfinance is not just based upon the size of the loan, there is an implied rejection of the higher than market interest rates required, as the findings of a survey revealed that small business or agriculture credit needed subsidised rates. As a result, there were few organisations that are interested in dedicating part of their services to this market niche.