The density of microfinance institutions and multiple borrowing in Ghana: Are rural borrowers vulnerable?

Abstract This primal study investigates the extent of multiple borrowing in Ghana and explores the relationship between the density of microfinance institutions (MFIs) and multiple borrowing. Further analyses examine the susceptibility of rural borrowers, and the influence of individual MFI categories. The incidence of multiple borrowing in Ghana is 35%. Although an increase in MFI density is less likely to engender multiple borrowing, rural clients have a propensity to overlap and are also sensitive to different institutional features. The study contributes vital empirical evidence of MFI expansion on multiple borrowing and has wider implications for institutional sustainability and clients' economic livelihoods.