Microfinance, Endettement Et Surendettement. Une Étude De Cas En Inde Du Sud
Drawing on data collected in South-India and using a socioeconomic and comprehensive approach, this paper explores the effects of microfinance on pre-existing indebtedness and over-indebtedness. The analysis demonstrates the complexity of causality chains and the diversity of microfinance effects and households trajectories. In a context where households are already highly indebted (mainly to informal finance), substitution does occur, but only amongst a portion of clients and it rapidly reaches a threshold effect for “technical” reasons (high transaction costs, limited amounts available to borrow, rigidity of repayments) as well as social reasons. For other clients, microfinance has a leverage effect : it contributes through various channels to improve the creditworthiness of the borrower and increases the range of their financial opportunities to well beyond microcredit alone. This widening of choices probably allows for improved daily financial management, but there are also risks, in particular in terms of over-indebtedness.
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