Repayment rates rates are high 10. Repayment rates are low. Because they emanate from local 11. Formal sector institutions do not have close contact environment, informal groups are aware with the environment in whic they operate. Sometimes of the problems that members may be they prosecute defaulters, which can have negative confronted with, and therefore they social repercussions, while at other times they do can deal with repayment difficulties not sue for reimbursement, leading borrowers to belive in a pragmatic manner.
Debt rescheduling that formal loans are free. is possible.
The informal sector has a dense and 12. This contributes to the efficient mobilization of savings and ensures high loan repayment rates. Within the informal sector, information is 13. Formal sector institutions do not have a good network widely diffused. The regular meetings of for dissemination of information.