Title: Determinants of Microcredit Repayment: The Case of Tunisian Microfinance Bank
Abstract: African Development ReviewVolume 25, Issue 3 p. 370-382 Original Article Determinants of Microcredit Repayment: The Case of Tunisian Microfinance Bank Ibtissem Baklouti, Ibtissem BakloutiUniversity of Sfax, Faculty of Economics and Management, Unit of research: Corporate Finance and Financial Theory (COFFIT). E-mail: [email protected] for more papers by this author Ibtissem Baklouti, Ibtissem BakloutiUniversity of Sfax, Faculty of Economics and Management, Unit of research: Corporate Finance and Financial Theory (COFFIT). E-mail: [email protected] for more papers by this author First published: 18 September 2013 https://doi.org/10.1111/j.1467-8268.2013.12035.xCitations: 25 Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat Abstract Repayment of loans in microfinance is a very important subject for study. Microfinance institutions lend to poor and low-income borrowers and thus the terms of lending should be as easy as possible for more poor people to have access. On the other hand, poor and low-income borrowers tend to have no collateral and thus would constitute a considerable risk to lenders once they default. Lenders, therefore, have to devise a special system whereby to ensure that loan defaults are as low as possible in order to avoid charging a higher interest rate which will defeat the very purpose of microfinance-lending. In this paper, using a binary logistic regression model, we undertake to examine the factors that affect default among borrowers. It has been discovered that borrowers' socio-demographic characteristics, past participation in microcredit loans and past credit history have significant impacts, as special features, on their default rates. Citing Literature Volume25, Issue3September / Septembre 2013Pages 370-382 RelatedInformation
Publication Year: 2013
Publication Date: 2013-09-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 41
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