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The repayment terms on loans to private equity are far more generous than in the 1980s, when repayment of the principal started immediately.
Even when repayment rates are high, a microfinance institution may charge an interest rate too low to cover its overall costs or its costs of funds, thus making it more of a charity than a commercial enterprise.
We show that while giving incentives has no cost in for-profit MFIs, it is costly in pro-poor MFIs: When repayment and wealth are positively correlated, a pro-poor MFI cannot obtain the selection of poor clients in the proportion it wishes with incentives based solely on repayment.
When repayment is unreasonably delayed, we levy a two-for-one penalty.
Similar(56)
Net lending on mortgages, which takes into account repayments and redemptions, rose by £1bn in August after falling into negative figures in July when repayments outstripped borrowing for the first time since records began.
And there are warnings that over-stretched households will struggle to cope when mortgage repayment rates rise.
That goal is undermined when crushing repayment burdens in hard times actually push many people to the very margins of society.
"When the repayment becomes legally part of the electric rate tariff for that property, the risk to the lender goes down because the property owner needs to pay it to keep the lights on," he said.
When the repayment period for PLUS loans begins, they should consider reducing retirement contributions if necessary and diverting these amounts to PLUS loan repayments.
Creditors will only accept more fiat money from the debtor if they believe that the money represents good relative future value (i.e. when debt repayment occurs and where value is relative to other currencies or real assets at that time).
More than one client has had to pay with favors from her own body when the repayment date has come and gone; more than one family has had to deliver a refrigerator or a car, because an irresponsible member thought to ask for money they could never repay.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com