While informal lenders are often perceived to have "outrageously high" interest rates,
in contrast with formal lenders, there appears to be considerable variation in the rates of
different informal lenders in many countries. We note that most informal lenders grant loans
with maturities that lie anywhere between 1-12 months, but with 3-6 month loans dominating. For purposes of comparing interest rates we may use monthly rates for different lenders. Aryeetey (1994) noted from an analysis of variance in the monthly rates of Ghanaian informal lenders that the main source of variation was the type of lender. Also, an analysis of the mean monthly interest rates by type of lender indicated that all other mean interest rates differed significantly from those of moneylenders. On the other hand, when other informal lenders made out loans to persons other than their traditional clientele, (who may be found in distinct groups), their lending rates were no different from those of moneylenders.