The rapid growth of micro-loans has prompted some governments to increase oversight and regulation. Our project informs governments’ policy decisions on both repayment structure and interest rate requirements by illuminating the potential benefits and costs of various options. The results also help microfinance practitioners shape the next generation of products that may deliver greater benefit to their clients while maintaining their own long-term viability.
Field, E.; Pande, R.; Papp, J.; Rigol, N. Long Run-Effects of Repayment Flexibility in Microfinance: Evidence from India (IGC Policy Brief). International Growth Centre (IGC), London, UK (2011) 3 pp.