Too Much Microcredit? A Survey of the Evidence on Over-indebtedness

This paper is written primarily for micro-lenders and the institutions that fund and support them. This paper looks at repayment problems mainly from the perspective of the clients, not the lenders. This paper lists reasons for paying close attention to the risk of over-indebting micro-borrowers and approaches to prevent over-indebtedness. The study concludes that it would go a long way to help if the stakeholders become more alert to microcredit’s potential downsides.