In developing countries, repeat loans like those to a farmer every year before the harvest, tend to be made by friends or relatives, who are related to the borrower.

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In developing countries, repeat loans, such as those to a farmer every year before the harvest, are often provided by microfinance institutions or local lenders rather than primarily by friends or relatives. These institutions aim to fill the gap left by traditional banks, which may not serve small-scale borrowers or those without collateral.

In Developing Countries, Repeat Loans Like Those to a Farmer