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.

Ir et al. BMC Health Services Research 2012 12:383   doi:10.1186/1472-6963-12-383

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