What is a social collateral?

This study proposes the social collateral model consists of social capital (trust and network), group pressure and training is used as supporting mechanism to encourage loan repayments and support the borrowers in creating human capital and economic capital.

What is social collateral in microfinance?

Microfinance institutions (MFIs) grant loans backed by social collateral to poor entrepreneurs whose incomes originate mostly from informal economic activities. As a consequence, MFIs are often committed to rely on soft information to assess borrowers’ credit-worthiness.

What is the nature of collateral under micro finance?

Collateral is an asset or property that an individual or entity offers to a lender as security for a loan. It is used as a way to obtain a loan, acting as a protection against potential loss for the lender should the borrower default.

Does microfinance have collateral?

Because many applicants cannot offer collateral, microlenders often pool borrowers together as a buffer. After receiving loans, recipients repay their debts together.

Which is the best definition of a collateral?

Collateral is an asset or property that an individual or entity offers to a lender as security for a loan. It is used as a way to obtain a loan, acting as a protection against potential loss for the lender should the borrower default

How does the Social collateral of a borrower work?

The social collateral of a borrower adds up the social capital embedded in the existing ties that can be informed about a default, if any. If a defaults, then the co-borrower b is always

Which is the best definition of collateralized personal loan?

Another type of borrowing is the collateralized personal loan, in which the borrower offers an item of value as security for a loan. The value of the collateral must meet or exceed the amount being loaned.

What do you mean by collateral contact in Act?

For the purpose of the Assertive Community Treatment (ACT) program, a collateral contact does not include contacts with other mental health service providers or individuals who are providing a paid service that would ordinarily be provided by the ACT team (e.g., meeting with a shelter staff who is assisting an ACT recip- ient in locating housing).