Is a not-for-profit home credit business feasible?

The seizing up of wholesale markets, combined with tightened lending criteria, has created a credit supply crisis among vulnerable borrowers, many of whom rely on home credit. Commercial home credit is long-established, with large numbers of low-income customers. It has many features that are valued by its customers, but the cost is high. This report addresses the essential elements of a not-for-profit service as identified by customers and lenders. These are home collection, a single price under-pinned by cross-subsidy, flexibility with regard to payment and debt recovery for people who genuinely cannot pay.

Author: 
Elaine Kempson
Author: 
Anna Ellison
Author: 
Claire Whyley
Author: 
Paul Jones
Publisher: 
Joseph Rowntree Foundation
Published: 
2009
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