Chapter

Affordable credit for low-income households

Sharon Collard

in Cash and care

Published by Policy Press

Published in print September 2006 | ISBN: 9781861348562
Published online March 2012 | e-ISBN: 9781447301615 | DOI: http://dx.doi.org/10.1332/policypress/9781861348562.003.0008
Affordable credit for low-income households

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This chapter examines the provision of credit to people on low incomes from the perspective of both the borrower and the lender. It then goes on to explore the size and nature of the potential market for more affordable credit and considers the options for delivering affordable credit to those who most need it. The chapter argues that whatever shape it takes, some intervention is required to ensure that poor people have access to affordable credit. Left to its own devices, the commercial market will continue to move towards more profitable customers and away from lending to the poorest people. The biggest, most immediate impact would come from a system of guaranteed automated payments and further expansion of the discretionary Social Fund. This would require substantial investment, which could be met through public–private partnership.

Keywords: poor income; credit access; lending; guaranteed automated payments; Social Fund

Chapter.  5677 words. 

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