Saving Microfinance Through Innovative Lending

The traditional microfinance model has had limited impact on the income and productivity of borrowers.

More innovative and flexible lending models can boost entrepreneurship and welfare.

This brief presents results from new IGC and non-IGC research on the traditional microfinance model and variations on this model – such as more flexible loans and lending for purposes beyond entrepreneurship – and discusses the impacts these models have on the lives of borrowers.

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