Informal borrowing sources and uses: insights from the North West Region, Cameroon

Ojöng, Nathanael

doi:10.1080/01436597.2018.1460201

Cited by 15 publications

(19 citation statements)

References 43 publications

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“…According to social norms, people are expected to help those in their kin network and not make economic gains from them. This finding that people receive interest-free loans from relatives and friends is consistent with previous studies (e.g., [1,61]).…”

Section: Discussionsupporting

confidence: 93%

Healthcare Financing in Rural Cameroon

Ojöng

2019

Societies

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In the global South, low-income populations are faced with frequent health shocks. Formal mechanisms to protect them against these shocks are absent or limited. Thus, what are the mechanisms used by low-income rural populations to finance healthcare? This paper draws on a qualitative study to examine the healthcare financing mechanisms of low-income rural populations in Cameroon. The findings suggest that low-income populations use 13 mechanisms to finance healthcare. Depending on several factors, people may use more than one of these mechanisms. In addition, social factors shape people’s patterns of usage of these mechanisms. Patterns of usage of these mechanisms are embedded in the principle of reciprocity. The notion of reciprocity does seem to discourage people from enrolling in the limited voluntary health insurance programmes which exist in various communities. Newly insured people were more likely to drop out if they did not receive a payout.

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Section: Discussionsupporting

confidence: 93%

Healthcare Financing in Rural Cameroon

Ojöng

2019

Societies

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“…Regarding informal credit sources, some NDA farmers also said they would consider borrowing from agricultural input suppliers, agricultural output traders, or private informal lenders because of quick disbursement and easy lending procedures. Friends and relatives were the least popular informal credit source among NDA types' hypothetical preferences (and also among CB types' revealed preferences in Figure 1, accounting for only 3.1% of borrowers' loans), in line with Lee and Persson (2016) and Ojong (2019) but opposite of Tran (1998).…”

Section: Reasons Given By Non-debt-averse Noncurrent Borrowers (Nda) ...mentioning

confidence: 92%

Why Did They Not Borrow? Debt‐Averse Farmers In Rural Vietnam

Trinh

Berg

Garces‐Ozanne

et al. 2022

The Developing Economies

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Nonborrowers are defined as debt averse if they have never borrowed in the past and prefer avoiding debt in the future, even when offered generous borrowing terms such as zero interest rates, zero collateral, and easy debt‐forgiveness. Other nonborrower types have either borrowed in the past or are open to doing so in the future. To better understand nonborrowing behavior, credit preference types (CPTs) were measured among 575 low‐income farmers in Mekong Delta, Vietnam. Among 208 current nonborrowers, 156 had never borrowed and only seven were credit rationed. Among never‐borrowers, 102 were debt‐averse. Thus, more than half of eligible nonborrowers (102 out of 201) were debt averse. This high prevalence challenges the assumption of unmet credit demand among the poor. Disaggregating CPTs reveals heterogeneity among nonborrowers that would remain observationally equivalent otherwise. We report reasons for not borrowing and investigate how observable characteristics influence the likelihood of debt aversion.

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“…Friends, relatives or credit associations may supply informal credit (e.g. Kumar et al 2017;Ojong 2019). Some of these potential lenders (such as relatives, for instance) may not apply interest rates; therefore, money borrowed from relatives is excluded from the analyses.…”

Section: Datamentioning

confidence: 99%

Land-Use Rights and Informal Credit in Rural Vietnam

Migheli

2023

Ital Econ J

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Access to credit and its cost are a major challenge for farmers in developing countries. Land serves as collateral for accessing formal credit, but the role that land ownership plays in accessing informal credit and determining its cost is understudied. This paper provides empirical evidence on the effects that land ownership has on both the demand for and the cost of informal and formal credit in the Mekong Delta. The results show that as land ownership increases, both the demand for and the cost of informal loans decrease, while the amount of money borrowed from formal lenders increases. The design and implementation of appropriate land redistributions seem to be a fundamental way to fight the informal credit market.

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Informal borrowing sources and uses: insights from the North West Region, Cameroon

Cited by 15 publications

References 43 publications

Healthcare Financing in Rural Cameroon

Healthcare Financing in Rural Cameroon

Why Did They Not Borrow? Debt‐Averse Farmers In Rural Vietnam

Land-Use Rights and Informal Credit in Rural Vietnam

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