Determinants of Loan Repayment: Experience from Indian Microcredit Programme

Ramu Maurya
Additional contact information
Ramu Maurya: Govind Ballabh Pant Social Science Institute, Allahabad, India.

International Journal of Economics and Empirical Research (IJEER), 2015, vol. 3, issue 10, 489-498

Abstract: Purpose: We provide an empirical analysis of the impact of monitoring within group based lending programmes on moral hazard behavior of its participants. Methodology: Based on the data from an extensive questionnaire held in Uttar Pradesh, India among 200 participants. Findings: The study finds new information that agent who is outsider of the group, it may be credit officer or other who nurtured and form the group, may be an emergent determinant of loan repayment. We find support for the fact that monitoring by the credit officer do help to reduce moral hazard behavior of group member and improve the repayment of loan. This study supports the emerging BCs model in India and in the world level. Recommendations: The main idea is that it reduces the marginal cost of monitoring and group conflict emerged by peer monitoring within group.

Keywords: Group Lending; Monitoring cost; Moral Hazard; Peer monitoring; Repayment (search for similar items in EconPapers)
JEL-codes: D82 H I3 I32 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://tesdo.org/shared/upload/pdf/papers/IJEER,%203_10_,%20489-498%20.pdf (application/pdf)
http://tesdo.org/journal_detail.php?paper_id=208&expand_year=2015 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ijr:journl:v:3:y:2015:i:10:p:489-498

Access Statistics for this article

International Journal of Economics and Empirical Research (IJEER) is currently edited by Dr. Muhammad Shahbaz (PhD Applied Economics)

More articles in International Journal of Economics and Empirical Research (IJEER) from The Economics and Social Development Organization (TESDO) Contact information at EDIRC.
Bibliographic data for series maintained by Dr. Muhammad Shahbaz (PhD Applied Economics) ( this e-mail address is bad, please contact ).