Read before you sign: How hidden fees, penalties devour microfinance loans

Dar es Salaam. When Lucy John (not her real name) urgently needed financial assistance, she turned to a microfinance institution (name withheld) for help.

The institution swiftly approved her request for Sh20 million, a relief she accepted without thoroughly reviewing the loan terms. The only detail she recalled was that the interest rate stood at 20 percent.