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Microleasing in Livelihood Restoration following a Natural Disaster  Image

Promoting Inclusive Markets and Financial Systems

Microleasing in Livelihood Restoration following a Natural Disaster

Microleasing in Livelihood Restoration following a Natural Disaster

Summary

This brief focuses on micro-leasing as a viable option  to loans for quickly replacing productive assets lost by the poor in major disasters.The brief explores emerging lessons about how microleasing can provide a win–win proposition to collateral-poor clients and liquidity strapped financial institutions, as well as to donors and policy makers concerned about market distortions and creation of grant mentality. Leasing is also permissible under Sharia Law, which may be practiced in some Islamic countries.

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