Szafarz, Ariane; Postelnicu, Luminita; Hermes, Niels - Centre Emile Bernheim, Solvay Brussels School of … - 2013
Microfinance group lending with joint liability allows asset-poor individuals to replace physical collateral by social … collateral pledged by group borrowers on group lending repayment. Our approach is novel as we take into account the external ties … group lending methodology works better in rural areas than in urban areas, namely because rural social networks are …