The effect of for-profit orientation of mfis on interest rates, profitability and sustainability

Micro finance institutions are the financial institutions. their main aim is to provide the financial services to poor. their cost is divided into two variables 1. fixed cost 2. variable cost. their revenue is generated from interest on investments and comes from non lending activities and financial assets gain.they charged high interest rates and their cost is also high. they provided the small scale financial services to poor on sustainability basis. The sustainability is the primary issue for the success. I used the penal data in my research and used the data of different MFI's from different countries of South Asia. I take the data from MFI's website. the results show that the more number of female borrowers and small scale loans are not effective. Their profitability decrease if they increased in percentage.i used the fixed effect model and random effect model and my results are in significance relation.