Cover Image

Factors affecting repayment performance in microfinance programs in Malaysia

This paper attempts to determine the factors affecting repayment performance in microfinance programs in Malaysia by using a multinomial logit regression model. The data used in this study is gathered through a survey on 309 respondents of TEKUN Nasional clients in Peninsular Malaysia. Results of th...

Full description

Saved in:
Bibliographic Details
Main Author: Norhaziah, Nawai,
Format: Conference Paper
Language:en_US
Published: Elsevier Science Bv 2015
Subjects:
repayment performance
microfinance programs
Malaysia
Online Access:http://ddms.usim.edu.my/handle/123456789/8950
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.usim-8950
record_format dspace
spelling my.usim-89502015-08-05T02:46:20Z Factors affecting repayment performance in microfinance programs in Malaysia Norhaziah, Nawai, repayment performance microfinance programs Malaysia This paper attempts to determine the factors affecting repayment performance in microfinance programs in Malaysia by using a multinomial logit regression model. The data used in this study is gathered through a survey on 309 respondents of TEKUN Nasional clients in Peninsular Malaysia. Results of the study indicate that gender, formal religious education, distance to the lender office, business formality, total sales per month, total loan received, loan monitoring and loan disbursement lag have significantly affected borrower's repayment performance. The result also shows that no pressure from Microfinance Institutions to pay the loan may cause the clients delayed their payment or just pay at a minimum amount. Besides, 11 percent of respondents also admitted that they not fully utilised the loan given for business that makes them finally default. The study suggests rebate should be given to the good borrowers to encourage them to repay their loan on schedule without delay and the establishment of a formal specialized microfinance banking institution to cater for the financial needs of micro and small entrepreneurs, especially in Malaysia. (C) 2012 Published by Elsevier Ltd. Selection and/or peer review under responsibility of Prof. Dr. Huseyin Arasli 2015-08-05T02:46:20Z 2015-08-05T02:46:20Z 2012 Conference Paper 1877-0428 http://ddms.usim.edu.my/handle/123456789/8950 en_US Elsevier Science Bv
institution Universiti Sains Islam Malaysia
building USIM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universit Sains Islam i Malaysia
content_source USIM Institutional Repository
url_provider http://ddms.usim.edu.my/
language en_US
topic repayment performance
microfinance programs
Malaysia
spellingShingle repayment performance
microfinance programs
Malaysia
Norhaziah, Nawai,
Factors affecting repayment performance in microfinance programs in Malaysia
description This paper attempts to determine the factors affecting repayment performance in microfinance programs in Malaysia by using a multinomial logit regression model. The data used in this study is gathered through a survey on 309 respondents of TEKUN Nasional clients in Peninsular Malaysia. Results of the study indicate that gender, formal religious education, distance to the lender office, business formality, total sales per month, total loan received, loan monitoring and loan disbursement lag have significantly affected borrower's repayment performance. The result also shows that no pressure from Microfinance Institutions to pay the loan may cause the clients delayed their payment or just pay at a minimum amount. Besides, 11 percent of respondents also admitted that they not fully utilised the loan given for business that makes them finally default. The study suggests rebate should be given to the good borrowers to encourage them to repay their loan on schedule without delay and the establishment of a formal specialized microfinance banking institution to cater for the financial needs of micro and small entrepreneurs, especially in Malaysia. (C) 2012 Published by Elsevier Ltd. Selection and/or peer review under responsibility of Prof. Dr. Huseyin Arasli
format Conference Paper
author Norhaziah, Nawai,
author_facet Norhaziah, Nawai,
author_sort Norhaziah, Nawai,
title Factors affecting repayment performance in microfinance programs in Malaysia
title_short Factors affecting repayment performance in microfinance programs in Malaysia
title_full Factors affecting repayment performance in microfinance programs in Malaysia
title_fullStr Factors affecting repayment performance in microfinance programs in Malaysia
title_full_unstemmed Factors affecting repayment performance in microfinance programs in Malaysia
title_sort factors affecting repayment performance in microfinance programs in malaysia
publisher Elsevier Science Bv
publishDate 2015
url http://ddms.usim.edu.my/handle/123456789/8950
_version_ 1645152506566672384
score 13.222552

Similar Items