Microfinance Over-Indebtedness: Understanding its drivers and challenging the common myths

摘要: The microfinance industry has been celebrated both for its social impact on poverty alleviation and profitability. With issues of over-indebtedness emerging among customers, achievements are at risk. This paper contributes to the industry's understanding definition causes over-indebtedness. It reveals why 5 myths erroneously oversimplify reality customers. works with theoretical empirical contributions from economics, psychology sociology, unites specific findings general consumer finance literature. In addition external influences, it highlights responsibility lenders in driving customers into also recognises role that borrowers involuntarily play over-indebting themselves. Enhancing our what is how caused, provides basis tailoring solutions root phenomenon addressing challenge all suitable levels. Latest version (June 2011) : http://www.solvay.edu/sites/upload/files/CEB_WorkingPapers/LastUpdate/wp10048.pdf