This paper explores the rural lending technology used by PRODEM to reach rural microfinance clients in Bolivia. It makes a quantitative comparison of its rural and urban portfolios and makes a qualitative description of its rural lending technology

At present, many microfinance institutions (MFIs) not only lend but also collect savings to serve better the needs of the poor. Little is known, however, if MFIs' overall costs decrease or increase as a consequence, nor it is clear which MFIs may benefit the most from expansion into savings...