Research shows that some or all of the following criteria is used for evaluation.
Past repayment Record Prompt repayment of previous loans remains the single most important criteria for a borrower to enhance his or her credit worthiness with the ICM supplier. Place of origin is important when we rialize that most low-income families in urban areas are first, second or third generation migrants, and original social ties continue to influence social status. Recommendation A person having a good relationship with an ICM supplier, such as a settlement leader, a shop keeper may make a recommendation on behalf of the borrower for a loan. This is different from a guarantee, in that it does not involve any financial committment on the part of the recommender Collateral Most suppliers do not need collateral, as risk aversion is ensured by other means, such as close informational ties. As with formal loans, thrid party guarantees are also seen in the ICM to ensure repayment, particularly for large loans.