This study sheds light on self-selected loan groups formed under a microcredit group-lending program and estimates how and the extent to which post-determined group-related factors reflecting the group atmosphere and rivalry among the group members affect the economic achievements of the loan users. Based on data from Maharashtra State, India, this study finds that social homogeneity and monitoring among members work as building blocks to increase the household income of a loan user, while fairness and frequent meetings with other members work as stumbling blocks. |
