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Inventi Impact - Microfinance & Banking

Articles

  • Inventi:mmb/17112/15
    DETERMINANTS OF LOAN REPAYMENT: EXPERIENCE FROM INDIAN MICROCREDIT PROGRAMME
    Ramu Maurya*

    This paper provide an empirical analysis of the impact of monitoring within group based lending programmes on moral hazard behavior of its participants, based on the data from an extensive questionnaire held in Uttar Pradesh, India among 200 participants. 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. Support was found 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. The main idea is that it reduce the marginal cost of monitoring and group conflict emerged by peer monitoring within group.

    How to Cite this Article
    Ramu Maurya. Determinants of Loan Repayment: Experience from Indian Microcredit Programme. Inventi Impact: Microfinance & Banking, 2016(1):13-21, 2016.
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