Determinants of microcredit loans repayment problem among microfinance borrowers in Malaysia
Suraya Hanim Mokhtar,
Gilbert Nartea () and
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Suraya Hanim Mokhtar: Lecturer, Department of Social Science,Faculty of Agriculture and Food Sciences,Universiti Putra Malaysia
Christopher Gan: Associate Professor, Faculty of Commerce,Department of Accounting, Economics and Finance,Lincoln University, Canterbury, New Zealand
International Journal of Business and Social Research, 2012, vol. 2, issue 7, 33-45
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 borrowersâ€™ themselves or unfavourable loan productâ€™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 borrowerâ€™s characteristic (age, gender and type of business involved) and microcredit loanâ€™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. (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:lrc:larijb:v:2:y:2012:i:7:p:33-45
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