The Personal/Casual Credit Suppliers

---

Personal credit suppliers are usually single individuals who supply credit on a "casual" and unencumbered manner. Typically, casual suppliers include friends, relatives, neighbours etc. Some of the characteristics common to all the casual suppliers are:

Single operators:

Casual operators are typically single individuals who operate in a need-based manner.

Irregular supply:

The credit supplied by the casual suppliers are irregular, not always available. That is, only when surplus funds are available with the individual or only when requested by a close friend/relative/neighbour, is the loan made.

Very few terms and conditions:

The terms and conditions imposed on borrowers from casual suppliers are very few, usually with no interest payments or regular repayment schedules. Transaction records are not usually kept.

Reciprocation:

Credit given by casual suppliers is usually loosely transacted and is considered as a "favour" made for a future reciprocation by the borrower.

Very close proximity:

The physical proximity of the borrower and the lender is usually very close, either in the place of work or in the settlement itself.

Here is a central idea from casual suppiers: the very flexible terms and conditions and reciprocity of the transaction which does not place any undue obligation on the lender or borrower.

---

Hari Srinivas - hsrinivas@gdrc.org
Go back to the Continuum Page
Return to the Virtual Library on Microcredit