Determinants of microcredit loans repayment problem among microfinance borrowers in Malaysia

Suraya Hanim Mokhtar, Gilbert Nartea, Christopher Gan

Abstract


Microfinance has been widely accepted as a policy option for alleviating poverty. However, microfinance institution often facing loan repayment problem. Loan default or lower loan collection can be caused by borrowers’ themselves or unfavourable loan product’s characteristics designed by the microfinance institutions. This paper investigates the determinants of loan repayment problems among microfinance borrowers in TEKUN and YUM institutions in Malaysia. By using logistic regression model, the empirical results showed borrower’s characteristic (age, gender and type of business involved) and microcredit loan’s characteristics (mode of repayment, repayment amount) are among the factors contribute to microcredit loan repayment problem among TEKUN and YUM borrowers in Malaysia.

 


Keywords


microcredit; loan repayment problems; subsidised microfinance institution; logistic regression; Malaysia.

Full Text:

PDF


DOI: http://dx.doi.org/10.18533/ijbsr.v2i7.118

Refbacks

  • There are currently no refbacks.




Copyright (c)

 ...........................................................................................................................

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

............................................................................................................................

If you find difficulties in submitting manuscript please forward your doc file to support@thejournalofbusiness.org. Our support team will assist you in submission process and other technical matters.

In order to get notifications on inbox please add  this domain thejournalofbusiness.org in your email safe list.

International journal of business and social research (Print)
ISSN 2164-2540

International journal of business and social research (Online)
ISSN 2164-2559

[International Journal of Business and Social Research (IJBSR) previously published by MIR Center for Socio-Economic Research, MD, USA. From February 2018 this journal is published by the LAR Center Press, OR, USA]