I was surprised to learn the other day that in Bolivia a huge fraction of the goods purchased with microcredit are smuggled across the Peruvian and Chilean borders in order to avoid customs (for instance, most appliances are smuggled here). Ignoring the morality of it (I don't think the government cares all that much - many retailers who sell contraband pay sales tax), do you think that the behavior of clients who sell contraband is somehow different? Are people who can and do buy illegal products less likely to care about fulfilling their loan commitments?