Suppose the microcredit program is restructured to give borrowers a grace period before beginning to repay their loan. They still obtain loans of size 50, and now must pay off the loan in two installments of 40 each in periods 2 and 3. No payment is required in period 1. How does this change affect the investment choices of Group 2 households?

Group	Number of households	Income from other sources in each period	Business skill level
Group 1	40	30	Low
Group 2	40	30	High
Group 3	20	80	High

Project Description		Setup cost	Profits delivered by business in each of three periods
			Period 1	Period 2	Period 3
Purchase inventory for small retail operation	Low skill	50	25	25	0
	High skill	50	40	40	0
Purchase sewing machine for tailoring business	Low skill	70	0	0	0
	High skill	70	0	60	60

Impact on average consumption for:	Participate (yes or no)	Period 1	Period 2	Period 3
Group 1		0	0	0
Group 2		10	10	0
Group 3		-50	30	60
Microcredit program Participants		-10	16.6	20
Percent of microcredit program participants whose consumption is raised by at least 15 in the given period		0	33	33