By Steve Grey, KF11, Kenya
I got to see a fascinating situation last week in Nairobi when I was with Caroline, a local Credit Officer from SMEP (one of Kiva’s lending partners in Kenya). It was a classic microfinance scenario: What happens when a member of a borrower group doesn’t pay? But it wasn’t theoretical anymore… it was happening right in front of me.
As you probably know, many microfinance institutions (like SMEP) sign up individual borrowers as members of groups, often 10-20 people. Rather than providing collateral for their individual...Continue Reading >>