Much has been written about the winning strategies of the informal lenders. In fact, institutions involved in microfinance activities have adapted many of these approaches.
As such, the concern of this article is not to regurgitate studies on the suppliers of credit. What is more interesting at this time is to understand the demand side of the transaction. Why, for instance, do poor borrowers in remote communities keep on going to informal lenders in spite of 'onerous' terms and conditions rather than to NGOs?
