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Publication Detail
IAL 2002-01: Contingent Loan Repayment in the Philippines

This paper examines credit repayment among rural Filipino households , using survey data collected in four villages in the Cordillera mountains of northern Philippines between July, 1994 and March, 1995. We find that the timing of loan repayment depends on shocks affecting lender and borrower but amounts repaid and debt forgiveness do not. Borrowers occasionally repay debt in labor when faced with a bad shock. Contractual interest charges often are reduced ex post but reductions do not depend on shocks except through the timing of repayment. We find no evidence of loan roll-over, debt peonage, or labor bonding.

PinoyME Foundation
Authors Keywords
Fafchamps, Marcel; Gubert, Flore; microfinance; microcredit; loan repayment;
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Published in 2002 and available in the nstitutions & Analyses de Long terme or can be downloaded as full text Downloaded 750 times since November 25, 2011