Is it time to write off group loans?

Microfinance institutions across the world are moving from group lending to individual lending. Yet, there is not much rigorous evidence on the borrower impact of both types of microcredit to either substantiate or challenge such a strategic shift. We present some such evidence from a randomised field experiment in Mongolia.

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Mongolian microfinance: Some first insights from a randomised field experiment

In Mongolia, as in numerous other countries, microfinance has attracted attention as a potentially powerful tool to generate pro-poor growth. Many Mongolians live in poverty and income disparities between urban and rural areas are significant. The rural economy remains vulnerable …

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