This paper focuses on the dynamic aspects of group-lending, in particular sequential financing and contingent renewal …

We examine group-lending under sequential financing. In a model with moral hazard, social capital and endogenous group … formation, we identify conditions such that sequential financing with joint liability leads to positive assortative matching … sequential financing (specially in the absence of joint liability) are no panacea though. …

sequential financing or lender monitoring, group-lending schemes may involve under-monitoring with the borrowers investing in … financing, or a combination of lender monitoringand joint liability are feasible. In fact, group-lending schemes with sequential … undesirable projects. Moreover, under certain parameter configurations, group-lending schemes involving either sequential …