Farmers swap fingerprints for micro-loans [video]
A high-tech method of fingerprinting is a simple, cost-effective way to encourage farmers in developing countries to apply for and repay micro loans, new research shows.
The study involved 3,000 farmers in Malawi who applied for micro loans, of an average amount of $117, to grow paprika.
“If you can’t figure out who a person is, you can’t determine their past credit history,” says researcher Dean Yang of the University of Michigan. “You can’t offer more and better loans to someone with a good credit history. You can’t withhold loans from someone with a history of defaulting.”
Full story at Futurity.
Photo credit: Dean Yang/U. Michigan
0 Comments