What microenterprise credit programs can learn from the moneylenders

This discussion paper argues that the moneylender, although perceived as an exploitative source of credit among the smallest businesses, nevertheless provides useful lessons that are applicable to microenterprise programs.

Christen, Robert Peck · 1970

Abstract

The discussion focuses on financial and economic factors in informal lending that lower the costs of borrowing for the microentrepreneur and result in greater income for the lender. Specific areas in which credit programs can learn from moneylenders are: cost structure; borrower selection; and collection mechanisms. (Author abstract)

Connected topics

Classification

Document type: Studies & Literature Reviews
DEC type: Other USAID Supported Study/Document
Subject: Small scale enterprises
DEC terms: CreditInformal sectorLoan administrationMicroenterprisesSmall scale enterprises
Sponsoring organization: USAID. Bur. for Food for Peace and Voluntary Assistance. Ofc. of Private and Voluntary Cooperation (PVC)
Authoring organization: ACCION International
Language: English

What microenterprise credit programs can learn from the moneylenders

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