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Source: World Bank (1995b), p22

Source: World Bank (1995b), p22

The entrepreneur was clear that the interest rate was not the issue. Provided the down payment and the monthly amount fit the customers' needs, he could sell in large volumes. He charged the prevailing rate in rural Indonesia at the time for consumer durables - 30 per cent on a declining balance. But because he offered a longer-term loan of four years (remember the banks were only offering two), he could bring the monthly amount paid down to US$12 for a 50-watt system (Table 5.6).

Table 5.6 Lowest down payment and monthly payment options under Indonesian enterprise's loan scheme

Table 5.6 Lowest down payment and monthly payment options under Indonesian enterprise's loan scheme

Product

Down payment

Down payment

Monthly payment

Monthly payment

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