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on Microfinance |
| By: | Olorunnisola Abiola Olubukola (Kampala International University, Kampala, Uganda); Aine Oman (Kampala International University, Kampala, Uganda); Manyange Micheal (Kampala International University, Kampala, Uganda); Olaiya Sanya Peter (Kampala International University, Kampala, Uganda); Matovu Juma (Kampala International University, Kampala, Uganda) |
| Abstract: | Financial inclusion is essential for all individuals in the community reflecting affordability, accessibility and reliability of financial services particularly in Nsiika town council, Buhweju district, Uganda where the levels of financial inclusion are still very low with only 16% of the mature population keeping their funds at official deposit taking organizations and now with introduction of mobile money services, it is considered a major factor. The main purpose of the study is to |
| Keywords: | diffusion of innovations theory, mobile loans, Uganda, Buhweju district, financial inclusion, mobile money services, mobile money services financial inclusion Buhweju district Uganda diffusion of innovations theory mobile loans |
| Date: | 2025–09–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05547005 |
| By: | Paul Gertler; Brett Green; Catherine Wolfram |
| Abstract: | We study a loan contract that requires borrowers to make a temporary cash deposit prior to disbursement, which is fully refunded and does not alter repayment incentives. In a randomized controlled trial with a digital lender, applicants are offered otherwise identical loans with or without a deposit. The deposit requirement reduces loan take-up but substantially improves repayment and lender profitability. The results indicate that deposits screen borrowers on both observable and unobservable characteristics. Higher-risk borrowers are less likely to take up deposit loans, and among borrowers with the same observable risk profile, those who accept deposit loans repay at higher rates, with the largest differences among low-risk borrowers. These findings show that simple contract features can complement data-driven credit models by adding an additional screening margin. |
| JEL: | G23 G51 O16 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35001 |
| By: | Natalia Kovrijnykh; Igor Livshits; Ariel Zetlin-Jones |
| Abstract: | This paper investigates how new borrowers expand their credit access. In particular, we examine the role that consumers’ credit choices, not just repayment behavior, play in building their credit histories. Using credit bureau data, we document that incumbent lenders typically increase credit limits for borrowers who open additional credit cards. This effect is especially pronounced for new borrowers. Our interpretation of this evidence is that lenders perceive credit offered by other lenders as revealing favorable information about the borrower. We build a novel model consistent with this hypothesis and show that the model’s predictions are consistent with the data. |
| Keywords: | Emerging Borrowers; Credit History; Information Aggregation; Debt Dilution |
| JEL: | D14 D82 D83 D86 G21 |
| Date: | 2026–03–26 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedpwp:102941 |