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.
Study Type
INTERVENTIONAL
Allocation
RANDOMIZED
Masking
SINGLE
Enrollment
3,000
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).
Innovations for Poverty Action
Cape Town, South Africa
Innovations for Poverty Action
Durban, South Africa
Innovations for Poverty Action
Port Elizabeth, South Africa
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)
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)
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)
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