Table 2 |
|||
| Overview of informal credit types and associated conditions | |||
| Type of credit and characteristics | Advantages and disadvantages | Frequency of use for health care* | Level of economic risk** |
| Short-term loan (Luy Roab) | +++++ | ++++ | |
| · Short lending period: 10–20 days | · Quick, easy access; addressing urgent requirements | ||
| · Relatively small amounts | · High interest rates coupled to daily repayment | ||
| · Daily repayment | |||
| · High interest (20%), to be paid as extra days of repayment | |||
| · Common in areas with commercial activities | |||
| · Usually no requirement for collateral or paper work | |||
| Medium-term loan (Luy Ruos) | +++ | +++ | |
| · Lending period few months to a year | · Large amount for relatively long period | ||
| · Relatively big amount | · High interest rates and requirement for collateral, making it less accessible for poor people | ||
| · Interest rates of 5-10% per month | |||
| · Deadline for repayment | |||
| · Collateral required as well as official transaction | |||
| Seasonal loan | ++ | ++ | |
| · In-between season lending: 6–10 months | · Easy access for farmers | ||
| · Relatively big amounts | · Repayment follows the farming cycle which is convenient for rural people | ||
| · Interest rates of 50-100% for the season | · Repayment in kind, just following harvest when prices are low | ||
| · Repayment after harvest, in crops | |||
|
· Very common Simple or no conditions |
|||
| Loans for unspecified period (Luy Ngoab or Luy Chho) | ++++ | ++ | |
| · Unspecified period | · Easy access for the poor | ||
| · Variable amount | · Absence of repayment deadline is favourable for poor people | ||
| · Relatively high interest: 1%/day; 5-30%/month | · High interest rates, | ||
| · requirement for collateral for big amounts | |||
| · Flexible timing for repayment | |||
| · Collateral for large amounts | |||
| Loans with repayment in labour (Yok Dai) | + | + | |
| · Variable, though mostly short, lending period | · Easy access, especially for the poorest | ||
| · Relatively small amount | · No money required, independent of cash flow | ||
| · Interest of 100% for whole period | · Undervalued labour | ||
| · Repayment in labour valued at 50% | · Hampers foraging on which poor depend for survival | ||
| · Only available in rural areas | · High interest rates | ||
| · No lending conditions | |||
* rated from the less frequent ‘+’ to the most frequent ‘+++++’; ** rated from the lowest ‘+’ to the highest ‘++++’.
Ir et al. BMC Health Services Research 2012 12:383 doi:10.1186/1472-6963-12-383
