DETERMINANT OF MICROCREDIT REPAYMENT
Keywords:
micro-credit, repayment, credit constrained, moral hazard
Abstract
This paper investigate the determinants of microcredit repayment by employing the logistic regression on micro-business households in Pati, Central Java. The result of this study reveals that loan repayment affected significantly by the business lines, food consumption spending, side job, other loan sources, collateral, and credit constrained. Interestingly, the result concludes that the loan repayment are no longer influenced by moral hazard, since the characteristics such as gender, education level, age, experience do not significantly encourage borrowers to repay. This paper also conform the important role of peer-screening process on hindering the credit default.Downloads
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References
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Chakravarty, S., Iqbal, S.M.Z., Shahriar, A.Z.M. (2013). Are Women “Naturally” Better Credit Risks in Microcredit? Evidence from Field Experiments in Patriarchal and Matrilineal Societies in Bangladesh. Annual Meeting of the American Economic Association in Philadelphia.
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Jalaludin. (2002). Studi Komparasi Kinerja Bank Perkreditan Rakyat (BPR) yang Berdasarkan Syariah dengan BPR Konvensional dalam Pemberian kredit untuk Pengusaha Kecil Perdesaan di Nusa Tenggara Barat (NTB). Tidak dipublikasikan. Program Pasca Sarjana IPB. Bogor
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Social Research (IJBSR), Vol. 2, No. 7, December 2012
Nawai, N., Shariff, M.N. (2013). Determinants of Repayment Performance in Microfinance Programs in Malaysia. Labuan Bulletin of International Business & Finance, Vol. 11, 2013, 14 – 29.
Ofonyelu, C., and Alimi, R.S. (2013). Perceived Loan Risk and Ex Post Default Outcome: Are the Bank’s Loan Screening Criteria Efficient?. Asian Economic and Financial Review, 2013, 3(8):991-1002
Ojiako, I. A, and Ogbukwa, B. C. (2012). Economic Analysis of Loan Repayment Capacity of Smallholder Cooperative Farmers in Yewa North Local Government Area of Ogun State, Nigeria. African Journal of Agricultural Research Vol. 7(13), pp. 2051-2062.
Oke, J.T.O., Adeyemo, R., and Agbonlahor, M.U. (2007). An Empirical Analysis of Microcredit Repayment in Southwestern Nigeria. Humanity & Social Sciences Journal 2 (1): 63-74, ISSN
1818-4960
Okojie, C., Monye-Emina, A., Eghafona, K., Osaghae, G., and Ehiakhamen, J.O. (2010). Institutional Environment and Access to Microfinance by Self-employed Women in the Rural Areas of Edo State. International Food Policy Research Institute. IFPRI. Brief No.14
Onyeagocha, S.U.O, Chidebelu, S. A. N. D, Okorji, E.C.O, Ukoha, A.H. Osuji, M.N and Korie, O.C. (2012). Determinants of Loan Repayment of Microfinance Institutions in Southeast States of Nigeria. International Journal of Social Science and Humanities Vol.1 No.1 April 2012 ISSN 2166-7721
Roslan, A.H. and Karim, M.Z.A. (2009). Determinants of Microcredit Repayment in Malaysia: The Case of Agrobank. Humanity & Social Science Journal 4(1): 45-52, 2009
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org/icm/b-eval.html on Thursday, 31 December 2015
Supadi dan Sumedi. (2004). Tinjauan Umum Kebijakan Kredit Pertanian. ICASERD working paper No. 25. Pusat Penelitian dan Pengembangan Sosial Ekonomi Pertanian, Departemen Pertanian
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Setargie, S. (2013). Credit Default Risk and its Determinants of Microfinance Industry in Ethiopia. The Journal of Young Economists. http://joyeconomists.com/2014/07/19/setargie-2013-credit-default-risk-and-microfinance-in-ethiopia/
Tundui, C., and Tundui, H. (2012). Microcredit, Micro Enterprising and Repayment Myth: The Case of Micro and Small Women Business Entrepreneurs in Tanzania. American Journal of Business and Management Vol. 2, No. 1, 2013, 20-30
Vitor, D.A. (2012). Determinants of Loan Repayment Default among Farmers in Ghana. Journal of Development and Agricultural Economics Vol. 4(13), pp. 339-345, November 2012. Available online at http://www.academicjournals.org/JDAE
Wongnaa, C.A., and Vitor, D.A. (2013). Factors Affecting Loan Repayment Performance Among Yam Farmers in the Sene District, Ghana. Agris on-line Papers in Economics and Informatics. Volume V Number 2, 2013
Chakravarty, S., Iqbal, S.M.Z., Shahriar, A.Z.M. (2013). Are Women “Naturally” Better Credit Risks in Microcredit? Evidence from Field Experiments in Patriarchal and Matrilineal Societies in Bangladesh. Annual Meeting of the American Economic Association in Philadelphia.
D’espallier, B. Guerin, I. Mersland, R. (2011). Woman and Repayment in Microfinance: A Global Analysis. World Development Vol. 39, No. 5. Pp 758-772.
Gebeyehu, Z. Beshire, H. And Haji, J. (2013). Determinants of Loan Repayment Performance of Smallholder Farmers: The Case of Kalu District, South Wollo Zone, Amhara National Regional State, Ethiopia. International Journal of Economics, Business and Finance Vol. 1, No. 11, December 2013, PP: 431- 446, ISSN: 2327-8188 (Online) Available online at http://ijebf.com/
Godquin, M. (2004). Micro Finance Repayment Performance in Bangladesh: How to Improve the Allocation of Loan by MFIs. World Development, Vol. 32, No. 11, pp. 1909-1926
Ibeleme, Sylvester N.O., Godwin C. O., and Odionye, J. C. (2013). Determinants of loan size and repayment performance of small oil producers in Nigeria: The case study of Abia State. International Journal of Business Management and Administration Vol. 2(3), pp. 043-054
Jalaludin. (2002). Studi Komparasi Kinerja Bank Perkreditan Rakyat (BPR) yang Berdasarkan Syariah dengan BPR Konvensional dalam Pemberian kredit untuk Pengusaha Kecil Perdesaan di Nusa Tenggara Barat (NTB). Tidak dipublikasikan. Program Pasca Sarjana IPB. Bogor
Juanda, B. (2009). Ekonometrika Pemodelan dan Pendugaan. Bogor: IPB Press.
Lukman, S. dkk. (2008). Kajian Upaya Peran Microbanking dan Pendekatan Pembiayaan Kelompok dalam Rangka Pengembangan UMK di Sumatra Barat. Bank Indonesia dan Centre for Banking Reasearch Universitas Andalas
Mokhtar, S.H., Nartea, G., and Gan, C. (2012). Determinants of microcredit loans repayment problem among microfinance borrowers in Malaysia. International Journal of Business and
Social Research (IJBSR), Vol. 2, No. 7, December 2012
Nawai, N., Shariff, M.N. (2013). Determinants of Repayment Performance in Microfinance Programs in Malaysia. Labuan Bulletin of International Business & Finance, Vol. 11, 2013, 14 – 29.
Ofonyelu, C., and Alimi, R.S. (2013). Perceived Loan Risk and Ex Post Default Outcome: Are the Bank’s Loan Screening Criteria Efficient?. Asian Economic and Financial Review, 2013, 3(8):991-1002
Ojiako, I. A, and Ogbukwa, B. C. (2012). Economic Analysis of Loan Repayment Capacity of Smallholder Cooperative Farmers in Yewa North Local Government Area of Ogun State, Nigeria. African Journal of Agricultural Research Vol. 7(13), pp. 2051-2062.
Oke, J.T.O., Adeyemo, R., and Agbonlahor, M.U. (2007). An Empirical Analysis of Microcredit Repayment in Southwestern Nigeria. Humanity & Social Sciences Journal 2 (1): 63-74, ISSN
1818-4960
Okojie, C., Monye-Emina, A., Eghafona, K., Osaghae, G., and Ehiakhamen, J.O. (2010). Institutional Environment and Access to Microfinance by Self-employed Women in the Rural Areas of Edo State. International Food Policy Research Institute. IFPRI. Brief No.14
Onyeagocha, S.U.O, Chidebelu, S. A. N. D, Okorji, E.C.O, Ukoha, A.H. Osuji, M.N and Korie, O.C. (2012). Determinants of Loan Repayment of Microfinance Institutions in Southeast States of Nigeria. International Journal of Social Science and Humanities Vol.1 No.1 April 2012 ISSN 2166-7721
Roslan, A.H. and Karim, M.Z.A. (2009). Determinants of Microcredit Repayment in Malaysia: The Case of Agrobank. Humanity & Social Science Journal 4(1): 45-52, 2009
Srinivas, H. (2015). Borrower Evaluation in the Informal Credit Markets. GDRC Reseaarch Output E-110. Kobe, Japan: Global Development Research Center. Retrieved from http://www.gdrc.
org/icm/b-eval.html on Thursday, 31 December 2015
Supadi dan Sumedi. (2004). Tinjauan Umum Kebijakan Kredit Pertanian. ICASERD working paper No. 25. Pusat Penelitian dan Pengembangan Sosial Ekonomi Pertanian, Departemen Pertanian
Voice of Indonesia. (2012). Kredi Usaha Tani Macet. http://www.id.voi.co.id/voi-komentar/1853- kredit-usaha-tani-macet
Setargie, S. (2013). Credit Default Risk and its Determinants of Microfinance Industry in Ethiopia. The Journal of Young Economists. http://joyeconomists.com/2014/07/19/setargie-2013-credit-default-risk-and-microfinance-in-ethiopia/
Tundui, C., and Tundui, H. (2012). Microcredit, Micro Enterprising and Repayment Myth: The Case of Micro and Small Women Business Entrepreneurs in Tanzania. American Journal of Business and Management Vol. 2, No. 1, 2013, 20-30
Vitor, D.A. (2012). Determinants of Loan Repayment Default among Farmers in Ghana. Journal of Development and Agricultural Economics Vol. 4(13), pp. 339-345, November 2012. Available online at http://www.academicjournals.org/JDAE
Wongnaa, C.A., and Vitor, D.A. (2013). Factors Affecting Loan Repayment Performance Among Yam Farmers in the Sene District, Ghana. Agris on-line Papers in Economics and Informatics. Volume V Number 2, 2013
Published
2016-09-30
How to Cite
Farida, F., Siregar, H., Nuryartono, N., & KP, E. (2016). DETERMINANT OF MICROCREDIT REPAYMENT. Buletin Ekonomi Moneter Dan Perbankan, 19(1), 57-80. https://doi.org/10.21098/bemp.v19i1.600
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Buletin Ekonomi Moneter dan Perbankan / Bulletin of Monetary Economics and Banking is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
