Show simple item record

dc.contributor.authorField, Erica
dc.contributor.authorPande, Rohini
dc.contributor.authorPark, Y. Jeanette
dc.date.accessioned2020-11-25T16:04:41Z
dc.date.available2020-11-25T16:04:41Z
dc.date.issued2011-06-20
dc.identifier.other9875390
dc.identifier.urihttps://hdl.handle.net/1813/79294
dc.description.abstract[Excerpt] This paper focuses on a key aspect of microfinance contracts - repayment schedules - to determine the impact of greater flexibility in repayment schedules on clients’ ability to smooth consumption as well as increase income by putting their loans in less liquid but higher return investments. Traditionally, microfinance repayment schedules are notoriously rigid, involving high frequency repayment in small installments beginning soon after loan disbursement, an important aspect of the lending model pioneered by earliest MFIs such as the Grameen Bank (Armendariz and Morduch 2005). However, in theory, clients are likely to be better off under more flexible repayment terms, which would give them greater ability to smooth consumption in the face of unanticipated shocks and encourage them to invest more of the loan in relatively illiquid but potentially higher return business investments (Field and Pande 2008). Through both of these channels, introducing flexibility in the timing of repayment by reducing repayment frequency could increase client long-run business income.
dc.language.isoen_US
dc.subjectIndia
dc.subjectmicrofinance
dc.subjectconsumption smoothing
dc.titleDesigning Microfinance to Enable Consumption Smoothing: Evidence from India
dc.typeunassigned
dc.description.legacydownloadsILAB_Designing_Microfinance_to_Enable_Consumption_Smoothing.pdf: 214 downloads, before Oct. 1, 2020.
local.authorAffiliationField, Erica: Harvard University
local.authorAffiliationPande, Rohini: Harvard University
local.authorAffiliationPark, Y. Jeanette: Harvard University


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record

Statistics