Factors Influencing Group Repayment Performance in Haryana: Application of Tobit Model
AbstractMicrofinance through self-help groups (SHGs) has evolved as a mechanism for social inclusion of the rural poor. This paper has identified the factors that influence the repayment performance of the SHGs in India, by conducting a study on a sample of 120 SHG members from 60 dairy SHGs and 60 non-members selected from the state of Haryana. Results of Tobit regression have shown that peer monitoring, group size and female percentage have positive influence, whereas homogeneity and loan amount have negative influence on the repayment performance of the SHGs. The study has concluded that if the essence of self-help and cooperation is fostered and monitored properly, the poor can also repay.
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Bibliographic InfoArticle provided by Agricultural Economics Research Association (India) in its journal Agricultural Economics Research Review.
Volume (Year): 24 (2011)
Issue (Month): 1 ()
Microfinance; Loan repayment; Deliquency rate; Haryana; Tabit model; Agricultural and Food Policy; Q13; Q14;
Find related papers by JEL classification:
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
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