This paper evaluates the imposition of caps on microcredit lending rates through directed credit policies for … negatively affected the portfolio balance of new microcredits and loans to SMEs granted by MFIs. Particularly, we find robust … results indicating that the balance of the microcredit and SME loans portfolio granted by MFIs, relative to the company …

margin. This study contributes valuable insights into the efficacy of public credit support programs during crises …