Microfinance is typically associated with joint liability of group members. However, a large part of microfinance … contracts. Moreover, we show that microfinance institutions offer group loans when the loan size is rather large, refinancing … costs are high, and competition between microfinance institutions is low. Otherwise, individual loans are offered …

success of microfinance around the world, a large number of commercial banks have made a profitable business out of this … sector. This paper explores various business models by commercial banks in microfinance and provides policy implications for …