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Character-based loans grow in Kenya

Micro-lending is having a major impact in Kenya, sparking as many as 40,000 small businesses as its poorest residents take advantage of the new opportunity. And with reputations on the line, the payback rate is outstanding.

We all know the drill. If you want to take out a loan, you need some collateral. But in very poor countries many people have little to borrow against. Sometimes household assets are little more than a few cooking pots or a small herd of goats. But in Kenya one bank has found that personal integrity can be form of collateral. Gretchen Wilson brings us this story from Nairobi, Kenya.

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[1 Jun 2007 09:46]


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