CGAP (World Bank) and Microfinance Center: Indebtedness Level of Microfinance Clients

The Microfinance Center and CGAP commissioned InfoPro to conduct a study to measure the indebtedness level of microfinance clients in Lebanon. The goal of the study was to identify the scale of over-indebtedness among credit users according to the definitions of “over-indebtedness”. Additionally, the study contributed to the identification of the factors that lead to over-indebtedness of low-income credit users, to give recommendations on how to prevent over-indebting clients in the future and to offer advice to sector participants on how to deal with over-indebted clients or at risk of over-indebtedness.  The survey was comprised of a qualitative segment to be followed at a later stage with a quantitative segment. The qualitative segment included a total of nine focus groups which were conducted in rural and urban areas. Respondents included borrowers from micro-finance institutions, non-borrowers, and bank clientele.