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Best Practise: Diaconia FRIF

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Uploaded by on Jun 6, 2011

Like many microfinance institutions, Diaconia FRIF does not ask for any collateral for their loans. They believe in a moral guarantee, a relationship based on trust. In order to establish this, Diaco-nias credit officers research the potential clients. Are they who they say they are, and can they be trusted? The methodology seems to work; less than 0,5 % of Diaconias clients default on their loans.

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