Maximising the benefits of social collateral for MSMEs


One of the discoveries in microfinancing that have kept it going is the fact that it is possible to make good loans without taking any financial collateral or physical security from the borrower. Well, maybe not exactly without collateral, but let’s say by replacing collaterals with something less demanding but equally effective and protective of the lender. That replacement is in the form of what is called social collateral.

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