Prospects, problems and potential of credit-granting NGOs

  • R. H. Schmidt and C. P. Zeitinger (1996). Journal of International Development, 241-258
  • Abstract: Recently NGOs have begun to be regarded as ideal providers of credit to small and micro businesses. The paper investigates whether this claim is justified and how the co-operation between donor institutions and NGOs should be structured. It reports the main results of an empirical investigation of the financial efficiency of credit-granting NGOs. These results cast serious doubts on the ability of NGOs to be viable institutions and lead the authors to suggest an institution-building approach of co-operating with NGOs as a promising alternative. Such an approach requires that donors assume a much more active role than they have played up to now.
  • Theme: Finance
  • Keywords: credit, donor-NGO relations, microenterprise credit, nongovernmental organisation
  • Reference type: Journal Article
  • Geographic location: Global SOuth
  • Quality:
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