The microfinance promise

@article{Morduch1999TheMP,
  title={The microfinance promise},
  author={Jonathan Morduch},
  journal={Journal of Economic Literature},
  year={1999},
  volume={37},
  pages={1569-1614}
}
  • J. Morduch
  • Published 1 December 1999
  • Economics
  • Journal of Economic Literature
In the past decade, microfinance programs have demonstrated that it is possible to lend to low-income households while maintaining high repayment rates--even without requiring collateral. The programs promise a revolution in approaches to alleviating poverty and spreading financial services, and millions of poor households are served globally. A growing body of economic theory demonstrates how new contractual forms offer a key to microfinance success--particularly the use of group-lending… 

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