Tuesday, September 15, 2009

When is micro credit not appropriate?

"Micro credit may be inappropriate where conditions pose severe challenges to loan repayment. For example, populations that are geographically dispersed or have a high incidence of disease may not be suitable microfinance clients. In these cases, grants, infrastructure improvements or education and training programmes are more effective. For micro credit to be appropriate, the clients must have the capacity to repay the loan under the terms by which it is provided

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