The study investigated the loan repayment, its determinants and socio-economic characteristics of microfinance loan beneficiaries in the Southeast states of Nigeria. It was carried out in three states of the five southeast states. Using a multistage sampling technique, a total of 144 loan beneficiaries in the three segments of MFIs, namely; formal (commercial and development banks); semi-formal...

Repayment versus Investment Conditions and Exclusivity in Lending Contracts Lenders condition future loans on some index of past performance. Typically, banks condition future loans on repayments of earlier obligations whilst international organizations (official lenders) condition future loans on the implementation of some policy action (‘investment’). We build an agency model that accounts fo...

The study presents the issues of rural women in Sadar Upazila of Gazipur district considering their participation in micro credit programs for poverty alleviation. Data were collected from 75 BRAC women beneficiaries of four villages following random sampling techniques. On the basis of credit, the respondent’s have been classified into three categories. These are: i) A-small credit (up to Tk.4...

Can microfinance borrowers use the discipline of regular loan repayments in order to accumulate savings if prompted to do so? In an experiment, we offered commercial savings products to the microfinance borrowers of Guatemala’s largest public-sector bank. We find that giving these borrowers the opportunity to develop a saving plan and be reminded of saving at the time of loan repayment caused n...

Given the substantial amount of resources currently invested in microcredit programs, it is more important than ever to accurately assess the extent to which peer monitoring by borrowers faced with group liability contracts actually reduces moral hazard. We conduct a field experiment with women about to enter a group loan program in Paraguay and then gather administrative data on the members’ r...

In order to stress test loan portfolios for the impacts of climate change, historical events need be analyzed create templates future events. Using 2012 Midwestern US drought as an example, this work creates a stress-testing template droughts. The analysis connects weather and crop yield data on local macroeconomic conditions by comparing drought-impacted agricultural counties with nearby urban...

We develop a model of the credit market where competitive lenders offer long-term contracts specifying a non-linear schedule of possible repayment schedules to borrowers who may differ both in their taste for immediate gratification (β) and their prior beliefs about that taste (β̂). The equilibrium contract to a borrower with given beliefs β̂ is discontinuous: it features an advantageous option i...

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 liabi...