Ramanagaram financial diaries: Cash patterns and repayments of microfinance borrowers

Author(s) Name: Rajalaxmi Kamath, Arnab Mukherji & Smita Ramanathan
Journal Name : Enterprise Development & Microfinance an International Journal
Volume : Vol. 21, No. 2, PP 101-117, 2010, June 2010
Year of Publication : 2010
Abstract :Using three months of data from financial diaries tracking daily cash flows of a group of microfinance borrowers in two urban slums in Karnataka, India, we show that the burgeoning microfinance sector faces a number constraints. These households are borrowing from multiple sources, specifically multiple MFIs. Secondly, a large fraction of each household's budget is spent servicing loans with the two largest components of budget being loan repayment and food expenditure.