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Sustainability in micro-credit – the need to eliminate access barriers
Targeting credit to particular income groups, and establishing collateral and training as qualifications for getting a loan have been regarded as essential ingredients of credit programmes aimed at the poor, and to protect their capital from defaulters. This article argues that restrictingcredit to certain groups prevents lending institutions from reducing their risks with diversified portfolios. Instead, groups which have been discriminated against in the past, such as women, should be helped to overcome the obstacles to gaining credit. In addition, training should not be
used as a prerequisite to receiving a loan, since most small businesses have already learned the hard way the rudiments of survival in a developing country economy.
Targeting credit to particular income groups, and establishing collateral and training as qualifications for getting a loan have been regarded as essential ingredients of credit programmes aimed at the poor, and to protect their capital from defaulters. This article argues that restricting
credit to certain groups prevents lending institutions from reducing their risks with diversified portfolios. Instead, groups which have been discriminated against in the past, such as women, should be helped to overcome the obstacles to gaining credit. In addition, training should not be
used as a prerequisite to receiving a loan, since most small businesses have already learned the hard way the rudiments of survival in a developing country economy.
credit to certain groups prevents lending institutions from reducing their risks with diversified portfolios. Instead, groups which have been discriminated against in the past, such as women, should be helped to overcome the obstacles to gaining credit. In addition, training should not be
used as a prerequisite to receiving a loan, since most small businesses have already learned the hard way the rudiments of survival in a developing country economy.
Employment Generating Programmes in the Urban Context of India:The Nehru Rozgar Yojana
Kruse, Beats
IDS Bulletin, Vol. 28 (1997), Iss. 2 P.86
https://doi.org/10.1111/j.1759-5436.1997.mp28002009.x [Citations: 0]Tabs navigation
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