Assets Matter to Poor People: But What Do We Know about Financing Assets?
An increasing number of poor households are gaining access to financing for physical assets ranging from smartphones to solar panels. However, even as poor people increase their borrowing for these assets, their impact on people’s livelihoods - and how debt affects the benefits of asset ownership - remains poorly understood. CGAP has undertaken a comprehensive review of the available evidence to understand (i) how asset ownership can lead to improvements in well-being for poor households and (ii) whether obtaining an asset through a loan or lease as opposed to a transfer, grant, or outright purchase affects the benefits associated with ownership.