To better understand multiple borrowing and its association with over indebtedness, MicroSave partnered with TSPI Development Corporation, to study the phenomenon. This study found strong evidence of the occurrence of multiple borrowing among urban-based women micro entrepreneurs.
The average loan principal for all respondents is P10,423 while multiple borrowers register a higher average of nearly P17,000. Close to half (65 women) of the sample acknowledged having current loans with two lenders (65% of the multiple borrowers) or with three or more lenders (35%).
This study also found evidence of over-indebtedness, with 60% of the multiple borrowers struggling to meet the weekly debt servicing rate higher than 20% of gross weekly income.