Incorporating Insurance Provisions in Microfinance Contracts: Learning from Visa®?

Loic Sadoulet

No DP2002-56, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: We examine a simple extension to existing credit contacts for the poor ('microfinance contracts'), that would allow financial institutions to provide repayment insurance to their clients. The proposed contract uses the repeated nature of loans to build credit records that borrowers in good standing can use to insure themselves against default in case of adverse income shocks.

Keywords: Credit; Insurance; Microfinance; Poverty (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (4)

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