Is it your experience that, when giving cash money as a donation/gift to a person does not result in positive consequences, giving a microloan to that same person produces different outcomes?
I assume that the people who use the (high interest) microloans for consumption would also use cash the same way, while those who use it to create a better future for themselves would do the same even when they don't have to pay it back.
Basically: is it the way/circumstances you got the money that makes the difference, or is the loan instrument just filtering out more of those that would "waste" it, because paying interest isn't attractive to them (and it wouldn't be 90% consumption credits, but 99.x% if there was no credit check and no interest)?
I assume that the people who use the (high interest) microloans for consumption would also use cash the same way, while those who use it to create a better future for themselves would do the same even when they don't have to pay it back.
Basically: is it the way/circumstances you got the money that makes the difference, or is the loan instrument just filtering out more of those that would "waste" it, because paying interest isn't attractive to them (and it wouldn't be 90% consumption credits, but 99.x% if there was no credit check and no interest)?