Microfinance from the Clients' Perspective: An Empirical Enquiry into Transaction Costs in Urban and Rural India

Thibaut Dehem, Marek Hudon · 2013 · Oxford Development Studies

Summary. This study examines transaction costs for microfinance clients in urban and rural India, analyzing 255 individual borrowers and 48 groups. Urban clients face higher absolute transaction costs (4.81% versus 3.35%), driven by opportunity expenses and individual costs. However, rural households experience greater relative burden since transaction costs consume a larger share of their monthly expenditure. Overall, transaction costs remain modest compared to interest rates.

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@article{dehem-2013-microfinance-clients-perspective-empirical-enquiry,
  title   = {Microfinance from the Clients' Perspective: An Empirical Enquiry into Transaction Costs in Urban and Rural India},
  author  = {Thibaut Dehem and Marek Hudon},
  journal = {Oxford Development Studies},
  year    = {2013},
  doi     = {10.1080/13600818.2013.787057},
  url     = {https://doi.org/10.1080/13600818.2013.787057}
}

TY  - JOUR
TI  - Microfinance from the Clients' Perspective: An Empirical Enquiry into Transaction Costs in Urban and Rural India
AU  - Thibaut Dehem
AU  - Marek Hudon
JO  - Oxford Development Studies
PY  - 2013
DO  - 10.1080/13600818.2013.787057
UR  - https://doi.org/10.1080/13600818.2013.787057
ER  - 

Details

DOI

10.1080/13600818.2013.787057

Countries

India

Regions

Asia

Categories

funding, rural-data-and-definitions

Added

2026-04-28