@article{145,
  author = {Rohini Pande and Erica Field},
  title = {Repayment Frequency and Default in Microfinance: Evidence from India},
  abstract = {In stark contrast to bank debt contracts, most micro-finance contracts require that repayments start nearly immediately after loan disbursement and occur weekly thereafter. Even though economic theory suggests that a more flexible repayment schedule would benefit clients and potentially improve their repayment capacity, micro-finance practitioners argue that the fiscal discipline imposed by frequent repayment is critical to preventing loan default. In this paper we use data from a field experiment which randomized client assignment to a weekly or monthly repayment schedule and find no significant effect of type of repayment schedule on client delinquency or default. Our findings suggest that, among micro-finance clients who are willing to borrow at either weekly or monthly repayment schedules, a more flexible schedule can significantly lower transaction costs without increasing client default.},
  year = {2008},
  journal = {Journal of European Economic Association},
  volume = {April-May 2008 6},
  pages = {501-509},
}