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Group Lending Policy and Repayment Rate in Islamic Microfinance Institutions

Abdul Ghafar Ismail () and Wan Nor AisyahWan Yussof

No 1435-1, Policy Papers from The Islamic Research and Teaching Institute (IRTI)

Abstract: The paper intends to contribute to the ongoing debate of whether group-lending policy are sustainable and able to achieve and maintain sound repayment performance, while serving poor borrowers without the support of third parties such as takaful operator. By aiding new features in better promoting group lending policy with hiwalah, it can further promote the development and sustainability of Islamic microfinance institutions.

Keywords: lending policy; hiwalah; Islamic microfinance; repayment rate (search for similar items in EconPapers)
Pages: 13 pages
Date: 2015-01-19
New Economics Papers: this item is included in nep-mfd
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