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PDF_logo Multiple Borrowing by MFI Clients

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Multiple Borrowing by MFI Clients


Author:Dr. Rashid Faruqee and Prof. M.A. Baqui Khalily

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Borrowing simultaneously from multiple sources is widely prevalent in the microfinance sector. With the increasing percentage of multiple borrowers, policymakers are more concerned with the possible adverse impacts on the demand side. From the supply side, it may result from unethical competitive practices, reckless lending by fast growing microfinance institutions (MFIs) without suitable assessment of client’s credit absorption capacities and at the end leading to over-indebtedness and defaults.

 
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