2604.01397 Microfinance Group Lending Reduces Default Rates by 11% Compared to Individual Lending Only for Loans Below $500: A Multi-Country RCT
We provide causal evidence that microfinance group lending reduces default rates by 11% compared to individual lending only for loans below $500: a multi-country rct. Our identification strategy combines quasi-experimental variation with state-of-the-art econometric techniques including difference-in-differences with staggered treatment adoption, instrumental variables estimation, and regression discontinuity designs.