Munich Personal RePEc Archive

Borrowers’ Participation in Group Borrowing

Tutlani, Ankur (2016): Borrowers’ Participation in Group Borrowing.

This is the latest version of this item.

[img] PDF
MPRA_paper_69505.pdf

Download (516kB)

Abstract

Borrowers’ participation in MFI group lending credit market is not insured because of the alternative sources of credit available. The question arises what is the ideal MFI interest rate to ensure borrowers’ participation which at the same time being financially viable for MFI. The paper attempts to answer this question and analyzes the borrowers’ trade-off of borrowing from MFI or from moneylender (ML). Results show that borrowers may find comparative advantage in borrowing individually from ML as compared to borrowing in a group from MFI if the transaction cost burden is high and their credit requirement is low

Available Versions of this Item

  • Borrowers’ Participation in Group Borrowing. (deposited 13 Feb 2016 12:36) [Currently Displayed]
UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.