Record Details

Borrowers’ Participation in Group Borrowing

Turkish Economic Review

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Field Value
 
Title Borrowers’ Participation in Group Borrowing
 
Creator TUTLANI, Ankur; Jawaharlal Nehru University
 
Subject Microfinance; Group lending; Informal finance; Transaction cost; Effective cost.
G21; O16; O17
 
Description 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.Keywords. Microfinance, Group lending, Informal finance, Transaction cost, Effective cost.JEL. G21, O16, O17.
 
Publisher Turkish Economic Review
Turkish Economic Review
 
Contributor —
 
Date 2016-03-18
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Format application/pdf
 
Identifier http://www.kspjournals.org/index.php/TER/article/view/673
10.1453/ter.v3i1.673
 
Source Turkish Economic Review; Vol 3, No 1 (2016): March; 170-187
Turkish Economic Review; Vol 3, No 1 (2016): March; 170-187
2149-0414
 
Language eng
 
Relation http://www.kspjournals.org/index.php/TER/article/view/673/730
 
Rights Copyright (c) 2016 Turkish Economic Review
http://creativecommons.org/licenses/by-nc/4.0