Microcredit is a widely practiced, widely revered technique of international development. It aims to increase incomes of the poor by giving them access to capital which can be used to create small businesses or other productive economic activity. Microcredit, despite its partly "market" approach...

This study examines the effect of a one-on-one outsourced pre-lending consulting service on the repayment behavior of microcredit borrowers in Korea with administrative data from the Smile Microcredit Bank. A random change in the cut-off loan amount for mandatory consulting is utilized as an...