Over-indebtedness of borrowers is a burning issue threatening the social mission of microfinance as a means for financial inclusion of the ‘unbanked’ poor. Action-oriented research is called for owing to rapid changes in the global financial industry. Longitudinal panel studies to track multiple borrowing that often leads to over-indebtedness take time and are costly. This paper presents results from a single household survey that tracked the loan history of the four most recent loans of each household for 1,433 women borrowers across 13 states in India. The analysis shows significant differences by region and age. We suggest that microfinance institutions should not use a one-size-fits-all model for designing products, including setting of interest rates, and that this can contribute to improved financial management and reduced over-indebtedness.

Akula, V. (2008) ‘Business basics at the base of the pyramid’, Harvard Business Review June 2008: 53-57. <http://hbr.org/2008/06/business-basics-at-the-base-of-the-pyramid/ar/1x≯ http://hbr.org/2008/06/business-basics-at-the-base-of-the-pyramid/ar/1x

Armstrong, D. (2008) ‘Creative giving: is bigger better?’ Forbes [online] x<www.forbes.com/forbes/2008/0602/066.htmlx≯ [accessed 3 September, 2011]. www.forbes.com/forbes/2008/0602/066.htmlx

Copestake, J.G. (2011) ‘Microfinance Impact and Innovation Conference 2010: Heralding a new era of microfinance innovation and research?’ Enterprise Development and Microfinance 22: 17-29. <http://dx.doi.org/10.3362/1755-1986.2011.004x≯

Counts, A. (2008) ‘Re-imagining microfinance’, Stanford Social Innovation Review Summer 2008: 6-53. <www.ssireview.org/articles/entry/reimagining_microfinance≯ www.ssireview.org/articles/entry/reimagining_microfinance

Field, E. and Pande, R. (2007) Repayment Frequency and Default in Microfinance: Evidence from India, Working Paper Series No. 20, Chennai, India: Institute for Financial Management and Research, Center for Micro Finance.

Hermes, N. and Lensink, R. (2011) ‘Microfinance: its impact, outreach, and sustainability’, World Development 9: 875-81. <http://dx.doi.org/10.1016/j.worlddev.2009.10.021x≯

Kappel, V., Krauss, A. and Lontzek, L. (2010) Over-Indebtedness and Microfinance: Constructing an Early Warning Index, Zurich: Center for Microfinance, University of Zurich.

McIntosh, C., Villaram, G. and Wydick, B. (2011) ‘Microfinance and home improvement: using retrospective panel data to measure program effects on discreet events’, World Development 39: 922-37. <http://dx.doi.org/10.1016/j.worlddev.2011.03.001x≯

Micro-Credit Ratings International Limited (M-CRIL) (2010) M-CRIL Microfinance Review 2010: Microfinance Contributes to Financial Inclusion, Gurgaon, India: M-CRIL.

M-CRIL (2011) Of Interest Rates, Margin Caps and Poverty Lending, Gurgaon, India: M-CRIL.

Mohan, L. and Holstein, W.K. (1998) ‘Decision support systems and management decisions’, in Decision Support Systems: An Applications Perspective, Chapter 3, unpublished.

Rhyne, E. (2011) ‘We need to keep learning about over-indebtedness’, in CGAP [blog] <www.cgap.org/blog/we-need-keep-learning-about-overindebtednessx≯ (posted 30 March 2011) [accessed 18 February 2013]. www.cgap.org/blog/we-need-keep-learning-about-overindebtednessx

Schicks, J. (2010) Microfinance Over-indebtedness: Understanding its Drivers and Challenging Common Myths, Working Paper No. 10/048, Brussels: Centre Emile Bernheim.

VMW Analytic Services (2012) ‘GDP of states & union territories for FY2011’ [online] <http://unidow.com/india%20home%20eng/statewise_gdp.htmlx≯. http://unidow.com/india%20home%20eng/statewise_gdp.htmlx

Akula, V. (2008) ‘Business basics at the base of the pyramid’, Harvard Business Review June 2008: 53-57. <http://hbr.org/2008/06/business-basics-at-the-base-of-the-pyramid/ar/1x≯ http://hbr.org/2008/06/business-basics-at-the-base-of-the-pyramid/ar/1x

Armstrong, D. (2008) ‘Creative giving: is bigger better?’ Forbes [online] x<www.forbes.com/forbes/2008/0602/066.htmlx≯ [accessed 3 September, 2011]. www.forbes.com/forbes/2008/0602/066.htmlx

Copestake, J.G. (2011) ‘Microfinance Impact and Innovation Conference 2010: Heralding a new era of microfinance innovation and research?’ Enterprise Development and Microfinance 22: 17-29. <http://dx.doi.org/10.3362/1755-1986.2011.004x≯

Counts, A. (2008) ‘Re-imagining microfinance’, Stanford Social Innovation Review Summer 2008: 6-53. <www.ssireview.org/articles/entry/reimagining_microfinance≯ www.ssireview.org/articles/entry/reimagining_microfinance

Field, E. and Pande, R. (2007) Repayment Frequency and Default in Microfinance: Evidence from India, Working Paper Series No. 20, Chennai, India: Institute for Financial Management and Research, Center for Micro Finance.

Hermes, N. and Lensink, R. (2011) ‘Microfinance: its impact, outreach, and sustainability’, World Development 9: 875-81. <http://dx.doi.org/10.1016/j.worlddev.2009.10.021x≯

Kappel, V., Krauss, A. and Lontzek, L. (2010) Over-Indebtedness and Microfinance: Constructing an Early Warning Index, Zurich: Center for Microfinance, University of Zurich.

McIntosh, C., Villaram, G. and Wydick, B. (2011) ‘Microfinance and home improvement: using retrospective panel data to measure program effects on discreet events’, World Development 39: 922-37. <http://dx.doi.org/10.1016/j.worlddev.2011.03.001x≯

Micro-Credit Ratings International Limited (M-CRIL) (2010) M-CRIL Microfinance Review 2010: Microfinance Contributes to Financial Inclusion, Gurgaon, India: M-CRIL.

M-CRIL (2011) Of Interest Rates, Margin Caps and Poverty Lending, Gurgaon, India: M-CRIL.

Mohan, L. and Holstein, W.K. (1998) ‘Decision support systems and management decisions’, in Decision Support Systems: An Applications Perspective, Chapter 3, unpublished.

Rhyne, E. (2011) ‘We need to keep learning about over-indebtedness’, in CGAP [blog] <www.cgap.org/blog/we-need-keep-learning-about-overindebtednessx≯ (posted 30 March 2011) [accessed 18 February 2013]. www.cgap.org/blog/we-need-keep-learning-about-overindebtednessx

Schicks, J. (2010) Microfinance Over-indebtedness: Understanding its Drivers and Challenging Common Myths, Working Paper No. 10/048, Brussels: Centre Emile Bernheim.

VMW Analytic Services (2012) ‘GDP of states & union territories for FY2011’ [online] <http://unidow.com/india%20home%20eng/statewise_gdp.htmlx≯. http://unidow.com/india%20home%20eng/statewise_gdp.htmlx

Akula, V. (2008) ‘Business basics at the base of the pyramid’, Harvard Business Review June 2008: 53-57. <http://hbr.org/2008/06/business-basics-at-the-base-of-the-pyramid/ar/1x≯ http://hbr.org/2008/06/business-basics-at-the-base-of-the-pyramid/ar/1x

Armstrong, D. (2008) ‘Creative giving: is bigger better?’ Forbes [online] x<www.forbes.com/forbes/2008/0602/066.htmlx≯ [accessed 3 September, 2011]. www.forbes.com/forbes/2008/0602/066.htmlx

Copestake, J.G. (2011) ‘Microfinance Impact and Innovation Conference 2010: Heralding a new era of microfinance innovation and research?’ Enterprise Development and Microfinance 22: 17-29. <http://dx.doi.org/10.3362/1755-1986.2011.004x≯

Counts, A. (2008) ‘Re-imagining microfinance’, Stanford Social Innovation Review Summer 2008: 6-53. <www.ssireview.org/articles/entry/reimagining_microfinance≯ www.ssireview.org/articles/entry/reimagining_microfinance

Field, E. and Pande, R. (2007) Repayment Frequency and Default in Microfinance: Evidence from India, Working Paper Series No. 20, Chennai, India: Institute for Financial Management and Research, Center for Micro Finance.

Hermes, N. and Lensink, R. (2011) ‘Microfinance: its impact, outreach, and sustainability’, World Development 9: 875-81. <http://dx.doi.org/10.1016/j.worlddev.2009.10.021x≯

Kappel, V., Krauss, A. and Lontzek, L. (2010) Over-Indebtedness and Microfinance: Constructing an Early Warning Index, Zurich: Center for Microfinance, University of Zurich.

McIntosh, C., Villaram, G. and Wydick, B. (2011) ‘Microfinance and home improvement: using retrospective panel data to measure program effects on discreet events’, World Development 39: 922-37. <http://dx.doi.org/10.1016/j.worlddev.2011.03.001x≯

Micro-Credit Ratings International Limited (M-CRIL) (2010) M-CRIL Microfinance Review 2010: Microfinance Contributes to Financial Inclusion, Gurgaon, India: M-CRIL.

M-CRIL (2011) Of Interest Rates, Margin Caps and Poverty Lending, Gurgaon, India: M-CRIL.

Mohan, L. and Holstein, W.K. (1998) ‘Decision support systems and management decisions’, in Decision Support Systems: An Applications Perspective, Chapter 3, unpublished.

Rhyne, E. (2011) ‘We need to keep learning about over-indebtedness’, in CGAP [blog] <www.cgap.org/blog/we-need-keep-learning-about-overindebtednessx≯ (posted 30 March 2011) [accessed 18 February 2013]. www.cgap.org/blog/we-need-keep-learning-about-overindebtednessx

Schicks, J. (2010) Microfinance Over-indebtedness: Understanding its Drivers and Challenging Common Myths, Working Paper No. 10/048, Brussels: Centre Emile Bernheim.

VMW Analytic Services (2012) ‘GDP of states & union territories for FY2011’ [online] <http://unidow.com/india%20home%20eng/statewise_gdp.htmlx≯. http://unidow.com/india%20home%20eng/statewise_gdp.htmlx

Akula, V. (2008) ‘Business basics at the base of the pyramid’, Harvard Business Review June 2008: 53-57. <http://hbr.org/2008/06/business-basics-at-the-base-of-the-pyramid/ar/1x≯ http://hbr.org/2008/06/business-basics-at-the-base-of-the-pyramid/ar/1x

Armstrong, D. (2008) ‘Creative giving: is bigger better?’ Forbes [online] x<www.forbes.com/forbes/2008/0602/066.htmlx≯ [accessed 3 September, 2011]. www.forbes.com/forbes/2008/0602/066.htmlx

Copestake, J.G. (2011) ‘Microfinance Impact and Innovation Conference 2010: Heralding a new era of microfinance innovation and research?’ Enterprise Development and Microfinance 22: 17-29. <http://dx.doi.org/10.3362/1755-1986.2011.004x≯

Counts, A. (2008) ‘Re-imagining microfinance’, Stanford Social Innovation Review Summer 2008: 6-53. <www.ssireview.org/articles/entry/reimagining_microfinance≯ www.ssireview.org/articles/entry/reimagining_microfinance

Field, E. and Pande, R. (2007) Repayment Frequency and Default in Microfinance: Evidence from India, Working Paper Series No. 20, Chennai, India: Institute for Financial Management and Research, Center for Micro Finance.

Hermes, N. and Lensink, R. (2011) ‘Microfinance: its impact, outreach, and sustainability’, World Development 9: 875-81. <http://dx.doi.org/10.1016/j.worlddev.2009.10.021x≯

Kappel, V., Krauss, A. and Lontzek, L. (2010) Over-Indebtedness and Microfinance: Constructing an Early Warning Index, Zurich: Center for Microfinance, University of Zurich.

McIntosh, C., Villaram, G. and Wydick, B. (2011) ‘Microfinance and home improvement: using retrospective panel data to measure program effects on discreet events’, World Development 39: 922-37. <http://dx.doi.org/10.1016/j.worlddev.2011.03.001x≯

Micro-Credit Ratings International Limited (M-CRIL) (2010) M-CRIL Microfinance Review 2010: Microfinance Contributes to Financial Inclusion, Gurgaon, India: M-CRIL.

M-CRIL (2011) Of Interest Rates, Margin Caps and Poverty Lending, Gurgaon, India: M-CRIL.

Mohan, L. and Holstein, W.K. (1998) ‘Decision support systems and management decisions’, in Decision Support Systems: An Applications Perspective, Chapter 3, unpublished.

Rhyne, E. (2011) ‘We need to keep learning about over-indebtedness’, in CGAP [blog] <www.cgap.org/blog/we-need-keep-learning-about-overindebtednessx≯ (posted 30 March 2011) [accessed 18 February 2013]. www.cgap.org/blog/we-need-keep-learning-about-overindebtednessx

Schicks, J. (2010) Microfinance Over-indebtedness: Understanding its Drivers and Challenging Common Myths, Working Paper No. 10/048, Brussels: Centre Emile Bernheim.

VMW Analytic Services (2012) ‘GDP of states & union territories for FY2011’ [online] <http://unidow.com/india%20home%20eng/statewise_gdp.htmlx≯. http://unidow.com/india%20home%20eng/statewise_gdp.htmlx