We combined a cross-sectional survey dataset with a randomized control trial (RCT) experiment to test the impact of relaxing typical microcredit payment rules with regard to each of the following: food consumption, loan repayments, and loan default behavior. Our analysis suggest no systematic difference among the treatment arms in case of default, overdue amount, or repayment frequency. On the other hand, we find no positive impact of the repayment flexibility on immediate food consumption during the period of seasonality.
