Evaluation of Impacts of Access to Credit and Loan Size for Microcredit Clients in South Africa

This study has been completed.
Sponsor:
Collaborators:
Broadening Access and Strengthening Input Market Systems/USAID
U.S. National Science Foundation
Bill and Melinda Gates Foundation
Princeton University
Social Science Research Council Program in Applied Economics
Federal Reserve Bank of New York
Information provided by:
Innovations for Poverty Action
ClinicalTrials.gov Identifier:
NCT00700349
First received: June 16, 2008
Last updated: June 17, 2008
Last verified: June 2008
  Purpose

This study involves randomization of individuals who were initially rejected from a micro-lending organization in South Africa. Subjects were placed into two arms: (1) not receiving a loan; (2) being reconsidered for a "second look." Of those in the second arm, 53% were then selected by the organization's loan officers to receive a standard loan for first-time borrowers. Mental health and financial data were collected at one timepoint: approximately 6-12 months after the subjects first applied for the loan.


Condition Intervention
Mental Health
Depression
Stress
Other: Small loan

Study Type: Interventional
Study Design: Allocation: Randomized
Intervention Model: Parallel Assignment
Masking: Single Blind (Outcomes Assessor)
Official Title: Evaluation of Impacts of Access to Credit and Loan Size for Microcredit Clients in South Africa

Resource links provided by NLM:


Further study details as provided by Innovations for Poverty Action:

Primary Outcome Measures:
  • Center for Epidemiologic Studies Depression Scale (CES-D), a 20-item questionnaire (0 = no risk, 60 = highest risk) [ Time Frame: At follow-up (6-12 months after subject enrollment) ] [ Designated as safety issue: No ]
  • Perceived stress, measured using the Cohen's Perceived Stress Scale (PSS), a 10-item questionnaire (0 = no stress, 40 = high stress) [ Time Frame: At follow-up (6-12 months after subject enrollment) ] [ Designated as safety issue: No ]

Secondary Outcome Measures:
  • Household income, measured by a variety of questions that asked about all sources of income obtained by all members of the applicant's household. [ Time Frame: At follow-up (6-12 months after subject enrollment) ] [ Designated as safety issue: No ]

Enrollment: 3000
Study Start Date: September 2004
Study Completion Date: November 2005
Primary Completion Date: November 2005 (Final data collection date for primary outcome measure)
Arms Assigned Interventions
No Intervention: 1
Individuals who were rejected from receiving a loan from a micro-lending organization were randomized to continue receiving no loan.
Experimental: 2
Individuals who were rejected from receiving a loan from a micro-lending organization were randomized to receive a "second look," to be reconsidered for a loan by loan officers.
Other: Small loan
Applicants in the treatment group were offered an interest rate, loan size, and maturity per the lender's standard underwriting criteria, involving a 4-month maturity at 11.75% per month, charged on the original balance (200% annual percentage rate).

  Eligibility

Ages Eligible for Study:   18 Years and older
Genders Eligible for Study:   Both
Accepts Healthy Volunteers:   No
Criteria

Inclusion Criteria:

  • Subjects were recruited from those who had been rejected from a lending organization for non-fraudulent or non-overindebtness reasons.

Exclusion Criteria:

  • None.
  Contacts and Locations
Choosing to participate in a study is an important personal decision. Talk with your doctor and family members or friends about deciding to join a study. To learn more about this study, you or your doctor may contact the study research staff using the Contacts provided below. For general information, see Learn About Clinical Studies.

Please refer to this study by its ClinicalTrials.gov identifier: NCT00700349

Locations
South Africa
Innovations for Poverty Action
Cape Town, South Africa
Innovations for Poverty Action
Durban, South Africa
Innovations for Poverty Action
Port Elizabeth, South Africa
Sponsors and Collaborators
Innovations for Poverty Action
Broadening Access and Strengthening Input Market Systems/USAID
U.S. National Science Foundation
Bill and Melinda Gates Foundation
Princeton University
Social Science Research Council Program in Applied Economics
Federal Reserve Bank of New York
Investigators
Principal Investigator: Dean Karlan, PhD Innovations for Poverty Action
Principal Investigator: Jonathan Zinman, PhD Dartmouth University
Principal Investigator: Lia Fernald, PhD University of California, Berkeley
  More Information

No publications provided

Responsible Party: Dean Karlan, Innovations for Poverty Action
ClinicalTrials.gov Identifier: NCT00700349     History of Changes
Other Study ID Numbers: IPA-2004-SA
Study First Received: June 16, 2008
Last Updated: June 17, 2008
Health Authority: United States: Institutional Review Board

Keywords provided by Innovations for Poverty Action:
depression
stress
microcredit
poverty
South Africa

Additional relevant MeSH terms:
Depression
Depressive Disorder
Behavioral Symptoms
Mood Disorders
Mental Disorders

ClinicalTrials.gov processed this record on July 31, 2014