Home credit, or doorstep lending, has typically operated under a female-to-female lending model. Not only are women more likely to use home credit, but they are also more inclined to work for the industry as loan agents. However, this type of lending generally has much higher interest rates than mainstream credit forms, and can also be viewed as potentially exploitative.
This article examines whether the policy and regulatory framework governing home credit takes into account the female-oriented nature of the industry, and thus protects the rights and interests of women, the major users of this type of credit. The findings underline the existence of a gap between policy and the urgent need to empower women as financial consumers. Policy interventions, data collection, and research on the industry need to be reoriented to take gender into account and to help achieve the empowerment of women in financial markets.
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