Loans seen as grants rather than credit. Large amount of loans siphoned off by larger farmers. Non participation of loan receipants in programmes. Inadequate information on borrowers. Member participation at every level.
Policies address the true needs of the members.
Greater incentive to co-operate. First hand information of borrowers readily available. Peer pressure insures that all members co-operate. A study in the rural credit market in Vietnam. Based on the data from a rural household survey in Vietnam, the dissertation attempts to examine the role of borrower transaction costs in a credit rationing mechanism, and in the segmentation of the rural credit market.