What happens if you can’t repay your loan? I guess this is a questions often asked of microfinance? A lot of borrowers don’t have significant collateral to put up against their loans and in some cases they put up “character” or “community” collateral in lieu of real collateral. However, today while hanging out in our parking lot I realized some clients do in fact put up real capital. I noticed that we had two goats and a car on our property that weren’t there the day before. Our drive, Antonio, kindly explained to me that the REPO man had snagged these goods from clients that couldn’t payback their loans. CUIDADO!
REPO'd goat 1
REPO'd goat 2
So who pays for the goat’s food and cleans up after him once he’s repo’d? Do they resell the animals or find a way to get them back to their original owner?
They were immediately liquidated. By 11am they were gone.
In trade for one backed up toilet?