Knowledge in Microsocial Milieus: the Case of Microfinance Practices Among Women in India

It is often considered that weak ties permit obtaining new information which contributes to successful ventures. However, is this true for all segments of the population? We explore the use of ties in very poor microsocial milieus of people who have resorted to microcredit. We find that strong ties and weak ties are both relevant in different situations for borrowers with different profiles. For the very poor, strong ties are more important in obtaining knowledge of sources of finance. However, more educated people in our sample of microcredit borrowers are able to exploit weak ties better.