Loan repayment among group borrowers in Tanzania: the role of relationship quality

Abstract Although the social capital, in terms of stronger interpersonal relationships between group borrowers, has been found to exert a positive impact on loan repayment, there is no existing research that endeavored study influence relationship quality individual borrowers repayment. Therefore, this seeks understand and its dimensions repayment using data gathered from survey 450 joint liability borrowers. The was analyzed structural equation modeling (SEM). Findings indicate do not suggesting follow-up loans provide incentives repay. Commitment, trust, satisfaction are affirmed as members, with trust exerting strongest influence. Potential need self-select screen each other based factors, particularly reduce opportunistic behavior.