What Makes A Credit Group Tick?

Microcredit clients are often assigned to credit groups with joint liability for loans. But what makes a credit group work well? What credit groups are likely to generate the internal social dynamics needed for group solidarity to form and repayment to happen? This is a matter of both group dynamics and individual characteristics, as some individuais conform more easily to in-group norrns. This brief presents an experiment conducted among rnicrocredit clients in Angola. The results suggest that more educated clients and female clients are more likely to favour members of their credit group over outside demands.