Microfinance currently experiences a huge inflow of private investors and a surge in the use of market instruments …. This raises the question of what market equilibria in microfinance markets look like and which kinds of market failure tend … problems, but do not eliminate them. -- microfinance ; group lending ; enforcement …

In recent years, microfinance institutions have expanded into group lending with individual liability, leaving out the … joint liability clause which was an important feature in earlier lending contracts. Recent experimental evidence indicates … that group lending may yield benefits, specifically lowering default rates, even in the absence of joint liability. In this …

join in a microfinance system operating on the basis of individual liability credit contract, or on the basis of joint … liability loan contract through forming self-help group or may not participate in any type of microfinance system. This paper … individual liability loan contract, comparatively less wealthy prefers to join microfinance system operating on the basis of …