Lending to rural poor through informal groups: a promising financial market innovation?
1979
Adams, D.W. | Ladman, J.R.
Extract: A number of low income countries have recently experimented with group lending as a way of providing more rural poor with financial services. Five advantages are claimed for this financial market innovation: (1) repayment rates are improved, (2) lender costs are reduced, (3) technical assistance costs are reduced, (4) more rural poor can be serviced, and (5) borrowers expend less resources to get loans. The paper summarizes results of research on these issues.
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