arguments

1. J E A N N E M A R G A R E T E N R I Q U E Z
K I M B E R L Y N T I U
The Men from Kabul and the
Eunuchs of India:
The (Not So) Simple Economics of
Lending to the Poor

2. Argument 1
 Lending should be easier for the poor, since they
borrow smaller loans. However, due to the credit
market difference between the poor and the rich,
the poor choose to borrow from informal sources
with higher interest rate.
 Udaipur Survey
 Failure of the banks – why get loan before election?
 Trust Issues
 Lenders and borrowers

3. Argument 2
 Microfinancing institutions should subject
themselves to evaluation in order to fully
recognized the impact of their program.
 Padmaja Reddy—Hyderabad
 Representative of “Big six”

4. Argument 3
 Microcrediting can be monitored by group
membership through regular group
meetings which should be continued, and
is highly encouraged to lessen the
possibility of borrowers defaulting on their
loans.
 1 week
 1 million rupiah career
 Pande & Field-Village Welfare Society—default rates
 No fail.
 Joint liability and group membership
 Spirit of entrepreneurship

5. THANK YOU