Type of credit and characteristics | Advantages and disadvantages | Frequency of use for health care* | Level of economic risk** |
---|---|---|---|
Short-term loan (Luy Roab) | Â | +++++ | ++++ |
· Short lending period: 10–20 days | · Quick, easy access; addressing urgent requirements |  |  |
· Relatively small amounts | · High interest rates coupled to daily repayment |  |  |
· Daily repayment |  |  |  |
· High interest (20%), to be paid as extra days of repayment |  |  |  |
· Common in areas with commercial activities |  |  |  |
· Usually no requirement for collateral or paper work |  |  |  |
Medium-term loan (Luy Ruos) | Â | +++ | +++ |
· Lending period few months to a year | · Large amount for relatively long period |  |  |
· Relatively big amount | · High interest rates and requirement for collateral, making it less accessible for poor people |  |  |
· Interest rates of 5-10% per month |  |  |  |
· Deadline for repayment |  |  |  |
· Collateral required as well as official transaction |  |  |  |
Seasonal loan | Â | ++ | ++ |
· In-between season lending: 6–10 months | · Easy access for farmers |  |  |
· Relatively big amounts | · Repayment follows the farming cycle which is convenient for rural people |  |  |
· Interest rates of 50-100% for the season | · Repayment in kind, just following harvest when prices are low |  |  |
· Repayment after harvest, in crops |  |  |  |
· Very common Simple or no conditions |  |  |  |
Loans for unspecified period (Luy Ngoab or Luy Chho) | Â | ++++ | ++ |
· Unspecified period | · Easy access for the poor |  |  |
· Variable amount | · Absence of repayment deadline is favourable for poor people |  |  |
· Relatively high interest: 1%/day; 5-30%/month | · High interest rates, |  |  |
 | · requirement for collateral for big amounts |  |  |
· Flexible timing for repayment |  |  |  |
· Collateral for large amounts |  |  |  |
Loans with repayment in labour (Yok Dai) | Â | + | + |
· Variable, though mostly short, lending period | · Easy access, especially for the poorest |  |  |
· Relatively small amount | · No money required, independent of cash flow |  |  |
· Interest of 100% for whole period | · Undervalued labour |  |  |
· Repayment in labour valued at 50% | · Hampers foraging on which poor depend for survival |  |  |
· Only available in rural areas | · High interest rates |  |  |
· No lending conditions |  |  |  |