KDI Journal of Economic Policy
- 제37권3호
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- Pages.55-74
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- 2015
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- 2586-2995(pISSN)
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- 2586-4130(eISSN)
Effect of Consulting on Microcredit Repayment in Korea
초록
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.