Diversion of loan use: who diverts and why?

نویسنده

  • Abdul Khaleque
چکیده

This paper uses 2973 loan profile records of 2810 poor households who have taken these loans from different quasi-formal sources of which about 50 percent of the loan taken is supplied by the Ultra-poor oriented program designed by PKSF. The objective of this program was to create some income source for these Ultra-poor through credit support. But diversion of loan use from the proposed IGA to other non-productive sector, especially to consumption hinders the objects and at the same time causes a threat to the MFIs as some of them become default. We observe that among these Ultra-poor households who have taken loan, about 68 percent of the loan was diverted from the proposed IGA to other activity with different degree of diversion and of these diverted loan, 40 percent was fully diverted. We find that among the non-savers, wage employers, inhabitants of char have higher likelihood of diverting their received loan from the proposed IGA to others and more than 28 percent of each loan on average was used for consumption. JEL Classification: D11, D12, R20

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Product Diversion to a Direct Competitor

April 2012 Abstract A manufacturer will often limit competition among downstream partners by authorizing only a select group of retailers to carry its product. However, it is not uncommon for authorized retailers to create an additional competitor by diverting units to an unauthorized seller. Prior research proposes that this diversion will not be optimal unless the diverted units are sold in n...

متن کامل

Deposits Funding and Loan Volatility in Iranian Banking System

Banks may well perform differently in lending to firms according to their funding structure. This paper surveys the relation between Loan volatility and deposit in Iranian banking system. The extent to which bank lending is connected to funding structure is affected by the banks’ characteristics (such as capital structure, profitability, and the measure of non-performing loans). To analyze this...

متن کامل

An Assessment of Beneficiaries’ Satisfaction of the Management of Loan Contract Components by Farmer Cooperative Societies in Edo State, Nigeria

The study assessed beneficiaries’ satisfaction in the management of loag-contract components by cooperatives involved in the farm credit delivery in Edo State. The objective was to identify the components of the farm loan contract, examine the management strategies and rate the beneficiaries’ satisfaction of such management strategies. This was done by purposively selecting 40 cooperatives invo...

متن کامل

Demographic and Educational Factors Affecting Self-Efficacy among Loan Borrowers of Agriculture Bank: The case of Bushehr Province

The present study, which is a cross-sectional survey, was conducted to investigate the views of the farmers who had received the facilities provided by the Agricultural Bank on their self-efficacy in using these facilities and factors affecting it. The statistical population of the study consisted of 205 farmers who were introduced by Jihad Agriculture Organization of Bushehr Province during th...

متن کامل

Optimizing Organic Waste to Energy Operations

A waste-to-energy firm that recycles organic waste with energy recovery performs two environmentally beneficial functions: it diverts waste from landfill, and it produces renewable energy. At the same time, the waste-to-energy firm serves and collects revenue from two types of customers: waste generators who pay for waste disposal service, and electricity consumers who buy energy. Given the pro...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2015