

Title |
Effect of consulting on microcredit repayment in Korea
Similar Titles
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Material Type | Article |
Author(English) |
Oh, Yoonhae |
Publisher |
[Sejong] : Korean Development Institute |
Date | 2015 |
Journal Title; Vol./Issue | KDI Journal of Economic Policy:vol. 37(no. 3) |
Pages | 21 |
Subject Country | South Korea(Asia and Pacific) |
Language | English |
File Type | Documents |
Original Format | |
Subject | Economy < Financial Policy |
Holding | Korean Development Institute; KDI School |
License | ![]() |
Abstract
This study examines the effect of a one-on-one outsourced pre-lending consulting service on the repayment behavior of microcredit borrowers in Korea with administrative data from the Smile Microcredit Bank. A random change in the cut-off loan amount for mandatory consulting is utilized as an identification strategy. This three-day pre-lending business consulting service is effective in encouraging repayment behavior of existing businesses but it has no significant effect on start-up loans. The effectiveness of the consulting service in deterring delinquency with regard to existing loans is greater among male borrowers than among females.