Moreover they can't design new products and expand their business to lessen the risk. Rather, the primary reason for the high Pricing Microfinance Loans is the high transaction cost of conventional microfinance operations in respect to loan size. The result is that the customary way to deal with microfinance has gained just constrained ground in resolving the problem it purports to address: that the world's poorest people pay the world's highest cost for small business development capital. One of the principal challenges of microfinance is giving small loans at an affordable cost. The worldwide normal interest and expense rate is estimated at 37%, with rates coming to as high as 70% in some markets.