Are We Overestimating Demand for Microloans?

This brief addresses demand for micro credit only, not demand for microfinance or other microfinance services, such as savings or funds transfers, which may be greater than the demand for micro credit. For instance, the ratio of savers to borrowers...

Full description

Bibliographic Details
Main Authors:	Anand, Malika, Rosenberg, Richard
Format:	Brief
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCEPTABLE COLLATERAL ASSETS BANK LOAN BANK POLICY BORROWER BORROWING CASH FLOW CGAP DEVELOPING COUNTRIES DEVELOPMENT BANK ELIGIBLE BORROWERS EXCLUSION FAMILIES FINANCIAL ACCESS FORMAL CREDIT HOUSEHOLD BUSINESSES HOUSEHOLD INCOME HOUSEHOLDS INDEBTED LATIN AMERICAN LENDING TECHNIQUES LOAN AMOUNT LOAN OFFICERS LOAN PROCEEDS LOAN REPAYMENT LOAN SIZE LOANS FROM FAMILY MFI MFIS MICROBORROWERS MICROCREDIT MICROCREDIT PROGRAMS MICROENTERPRISES MICROENTREPRENEURS MICROFINANCE MICROFINANCE CLIENTS MICROFINANCE INDUSTRY MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR MICROLENDING MICROLOAN MICROLOANS NONGOVERNMENTAL ORGANIZATIONS OUTREACH OUTSTANDING BALANCE OUTSTANDING LOAN OUTSTANDING LOAN AMOUNT POOR HOUSEHOLDS POTENTIAL BORROWERS REPAYMENT REPAYMENT PERFORMANCE REPAYMENT SCHEDULE SAVINGS SMALL BUSINESS VILLAGES
Online Access:	http://documents.worldbank.org/curated/en/2008/04/9470876/overestimating-demand-micro-loans http://hdl.handle.net/10986/9521

id	okr-10986-9521
recordtype	oai_dc
spelling	okr-10986-95212021-04-23T14:02:45Z Are We Overestimating Demand for Microloans? Anand, Malika Rosenberg, Richard ACCEPTABLE COLLATERAL ASSETS BANK LOAN BANK POLICY BORROWER BORROWING CASH FLOW CGAP DEVELOPING COUNTRIES DEVELOPMENT BANK ELIGIBLE BORROWERS EXCLUSION FAMILIES FINANCIAL ACCESS FORMAL CREDIT HOUSEHOLD BUSINESSES HOUSEHOLD INCOME HOUSEHOLDS INDEBTED LATIN AMERICAN LENDING TECHNIQUES LOAN AMOUNT LOAN OFFICERS LOAN PROCEEDS LOAN REPAYMENT LOAN SIZE LOANS FROM FAMILY MFI MFIS MICROBORROWERS MICROCREDIT MICROCREDIT PROGRAMS MICROENTERPRISES MICROENTREPRENEURS MICROFINANCE MICROFINANCE CLIENTS MICROFINANCE INDUSTRY MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR MICROLENDING MICROLOAN MICROLOANS NONGOVERNMENTAL ORGANIZATIONS OUTREACH OUTSTANDING BALANCE OUTSTANDING LOAN OUTSTANDING LOAN AMOUNT POOR HOUSEHOLDS POTENTIAL BORROWERS REPAYMENT REPAYMENT PERFORMANCE REPAYMENT SCHEDULE SAVINGS SMALL BUSINESS VILLAGES This brief addresses demand for micro credit only, not demand for microfinance or other microfinance services, such as savings or funds transfers, which may be greater than the demand for micro credit. For instance, the ratio of savers to borrowers is about 10-to-1 for Bank Rakyat Indonesia, 9-to-1 for Centenary Bank in Uganda, and 4-to-1 for PRODEM in Bolivia (MIX Market). Micro credit demand estimates address the amount of funding required: the expected number of active borrowers is multiplied by an assumed average outstanding loan amount. Reasonable estimates of average loan size can be derived from international databases maintained by the mix market and micro credit summit. But estimating numbers of expected borrowers can be a minefield. This brief discusses the kinds of reductions that should be factored into a demand estimate and looks at some all too-sketchy empirical evidence about the size of those reductions. Most-but not all-of this evidence raises a concern that demand may often be overestimated by a considerable margin. 2012-08-13T08:51:21Z 2012-08-13T08:51:21Z 2008-04 http://documents.worldbank.org/curated/en/2008/04/9470876/overestimating-demand-micro-loans http://hdl.handle.net/10986/9521 English CGAP Brief CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCEPTABLE COLLATERAL ASSETS BANK LOAN BANK POLICY BORROWER BORROWING CASH FLOW CGAP DEVELOPING COUNTRIES DEVELOPMENT BANK ELIGIBLE BORROWERS EXCLUSION FAMILIES FINANCIAL ACCESS FORMAL CREDIT HOUSEHOLD BUSINESSES HOUSEHOLD INCOME HOUSEHOLDS INDEBTED LATIN AMERICAN LENDING TECHNIQUES LOAN AMOUNT LOAN OFFICERS LOAN PROCEEDS LOAN REPAYMENT LOAN SIZE LOANS FROM FAMILY MFI MFIS MICROBORROWERS MICROCREDIT MICROCREDIT PROGRAMS MICROENTERPRISES MICROENTREPRENEURS MICROFINANCE MICROFINANCE CLIENTS MICROFINANCE INDUSTRY MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR MICROLENDING MICROLOAN MICROLOANS NONGOVERNMENTAL ORGANIZATIONS OUTREACH OUTSTANDING BALANCE OUTSTANDING LOAN OUTSTANDING LOAN AMOUNT POOR HOUSEHOLDS POTENTIAL BORROWERS REPAYMENT REPAYMENT PERFORMANCE REPAYMENT SCHEDULE SAVINGS SMALL BUSINESS VILLAGES
spellingShingle	ACCEPTABLE COLLATERAL ASSETS BANK LOAN BANK POLICY BORROWER BORROWING CASH FLOW CGAP DEVELOPING COUNTRIES DEVELOPMENT BANK ELIGIBLE BORROWERS EXCLUSION FAMILIES FINANCIAL ACCESS FORMAL CREDIT HOUSEHOLD BUSINESSES HOUSEHOLD INCOME HOUSEHOLDS INDEBTED LATIN AMERICAN LENDING TECHNIQUES LOAN AMOUNT LOAN OFFICERS LOAN PROCEEDS LOAN REPAYMENT LOAN SIZE LOANS FROM FAMILY MFI MFIS MICROBORROWERS MICROCREDIT MICROCREDIT PROGRAMS MICROENTERPRISES MICROENTREPRENEURS MICROFINANCE MICROFINANCE CLIENTS MICROFINANCE INDUSTRY MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR MICROLENDING MICROLOAN MICROLOANS NONGOVERNMENTAL ORGANIZATIONS OUTREACH OUTSTANDING BALANCE OUTSTANDING LOAN OUTSTANDING LOAN AMOUNT POOR HOUSEHOLDS POTENTIAL BORROWERS REPAYMENT REPAYMENT PERFORMANCE REPAYMENT SCHEDULE SAVINGS SMALL BUSINESS VILLAGES Anand, Malika Rosenberg, Richard Are We Overestimating Demand for Microloans?
relation	CGAP Brief
description	This brief addresses demand for micro credit only, not demand for microfinance or other microfinance services, such as savings or funds transfers, which may be greater than the demand for micro credit. For instance, the ratio of savers to borrowers is about 10-to-1 for Bank Rakyat Indonesia, 9-to-1 for Centenary Bank in Uganda, and 4-to-1 for PRODEM in Bolivia (MIX Market). Micro credit demand estimates address the amount of funding required: the expected number of active borrowers is multiplied by an assumed average outstanding loan amount. Reasonable estimates of average loan size can be derived from international databases maintained by the mix market and micro credit summit. But estimating numbers of expected borrowers can be a minefield. This brief discusses the kinds of reductions that should be factored into a demand estimate and looks at some all too-sketchy empirical evidence about the size of those reductions. Most-but not all-of this evidence raises a concern that demand may often be overestimated by a considerable margin.
format	Publications & Research :: Brief
author	Anand, Malika Rosenberg, Richard
author_facet	Anand, Malika Rosenberg, Richard
author_sort	Anand, Malika
title	Are We Overestimating Demand for Microloans?
title_short	Are We Overestimating Demand for Microloans?
title_full	Are We Overestimating Demand for Microloans?
title_fullStr	Are We Overestimating Demand for Microloans?
title_full_unstemmed	Are We Overestimating Demand for Microloans?
title_sort	are we overestimating demand for microloans?
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2008/04/9470876/overestimating-demand-micro-loans http://hdl.handle.net/10986/9521
_version_	1764409664782467072

Are We Overestimating Demand for Microloans?

Similar Items