IDEAS home Printed from https://ideas.repec.org/p/phd/dpaper/dp_2004-05.html
   My bibliography  Save this paper

In-depth Analysis on the Access to and Suitability of the Loans

Author

Listed:
  • Manlagnit, Ma. Chelo V.

Abstract

This paper examines the borrowing behavior of the households and the suitability of the loans obtained from the community oriented financial intermediary (COFI) and reinforces the significance of using a household approach in evaluating the effects of microfinance. Using descriptive and statistical analyses, results show that the effects of credit in household income and expenses are positive and statistically significant with client households experiencing greater positive effects than nonclient households. Moreover, nonclient households, unlike client households, allot a greater percentage of their loans in proportion to their income on food and nonfood consumptions suggesting that they are more engaged in borrowing for smoothing their consumptions. It has also been shown that the access to COFI loans is relatively easy for the client household members since the requirements and processing are fast and reasonable. This indicates that credit cooperatives rarely disapprove loan applications and if there are numbers of pending loan applications, they usually reduce the amount of loan approved instead of disapproving the application. In general, COFI loans reasonably suit the needs of the COFI clients. Given that both household types obtained their credits from various lenders, those who have access to the COFI system have a reliable source of loans indicating that the COFI performs a particularly important role in providing services, especially credit lines.

Suggested Citation

  • Manlagnit, Ma. Chelo V., 2004. "In-depth Analysis on the Access to and Suitability of the Loans," Discussion Papers DP 2004-05, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2004-05
    as

    Download full text from publisher

    File URL: https://www.pids.gov.ph/publication/discussion-papers/in-depth-analysis-on-the-access-to-and-suitability-of-the-loans
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Diagne, Aliou & Zeller, Manfred & Sharma, Manohar, 2000. "Empirical measurements of households' access to credit and credit constraints in developing countries," FCND briefs 90, International Food Policy Research Institute (IFPRI).
    2. Lamberte, Mario B. & Mangahas, Mahar & Agabin, Meliza H. & Abrera-Mangahas, Maria Alcestis, 1989. "Integrative Report on the Informal Credit Markets in the Philippines," Working Papers WP 1989-10, Philippine Institute for Development Studies.
    3. Zeller, Manfred, 1994. "Determinants of credit rationing: A study of informal lenders and formal credit groups in Madagascar," World Development, Elsevier, vol. 22(12), pages 1895-1907, December.
    4. Lamberte, Mario B. & Graham, Douglas H. & Relampagos, Julius P., 1990. "Credit Unions: An Underrated Mode of Mobilizing and Allocating Resources in Rural Areas," Working Papers WP 1990-21, Philippine Institute for Development Studies.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrés Murcia Pabón, 2007. "Determinantes del acceso al crédito de los hogares colombianos," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, vol. 25(55), pages 40-83, December.
    2. Martin Petrick, 2005. "Empirical measurement of credit rationing in agriculture: a methodological survey," Agricultural Economics, International Association of Agricultural Economists, vol. 33(2), pages 191-203, September.
    3. Yusuf Ibrahim Kofarmata & Shri Dewi Applanaidu & Sallahuddin Hassan, 2016. "Determinants of Demand for Credit: A Conceptual Review," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 3(1), pages 6-10.
    4. Lamberte MB., 1995. "Credit unions as channels of micro-credit lines : The Pilippine case," ILO Working Papers 993127133402676, International Labour Organization.
    5. Coady, David P. & Grosh, Margaret & Hoddinott, John, 2002. "Targeting outcomes redux," FCND briefs 144, International Food Policy Research Institute (IFPRI).
    6. Lindelow, Magnus, 2002. "Health care demand in rural Mozambique," FCND discussion papers 126, International Food Policy Research Institute (IFPRI).
    7. Bime, Mary-Juliet & Mbanasor, Jude Anayochukwu, 2011. "Analysis of rural credit market performance in north west region, Cameroon," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 3(3), pages 1-6, September.
    8. Bhattacharjee, Manojit & Rajeev, Meenakshi, 2014. "Is access to loan adequate for financing capital expenditure?: A household level analysis on some selected states of India," Working Papers 315, Institute for Social and Economic Change, Bangalore.
    9. Ruel, Marie T. & de la Briere, Benedicte & Hallman, Kelly & Quisumbing, Agnes R. & Coj, Nora, 2002. "Does subsidized childcare help poor working women in urban areas?," FCND briefs 131, International Food Policy Research Institute (IFPRI).
    10. Menkhoff, Lukas & Rungruxsirivorn, Ornsiri, 2009. "Village Funds in the Rural Credit Market of Thailand," Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009 45, Verein für Socialpolitik, Research Committee Development Economics.
    11. Finagnon Antoine Dedewanou & Rolande C. B. Kpekou Tossou, 2022. "Remittances and agricultural productivity in Burkina Faso," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(3), pages 1573-1590, September.
    12. Abbi M. Kedir & Ibrahim,Gamal, 2012. "Household-Level Credit Constraints in Urban Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 20(1), September.
    13. Haddad, Lawrence James & Maluccio, John A., 2002. "Trust, membership in groups, and household welfare," FCND briefs 135, International Food Policy Research Institute (IFPRI).
    14. Muhongayire, Wivine, 2012. "An Economic Assessment of the Factors Influencing Smallholder Farmers' Access to Formal Credit: A Case Study of Rwamagana District, Rwanda," Research Theses 198522, Collaborative Masters Program in Agricultural and Applied Economics.
    15. Faisal Buyinza & John Mutenyo & Anthony Tibaingana, 2018. "Factors Affecting Access to Formal Credit by Micro and Small Enterprises in Uganda," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 4(4), pages 405-424, October.
    16. Haddad, Lawrence James & Adato, Michelle, 2001. "How effectively do public works programs transfer benefits to the poor?," FCND briefs 108, International Food Policy Research Institute (IFPRI).
    17. Ukpe, Offiong Uma & Nweze, Noble Jackson & Arene, Chukwuemeka John, 2016. "Food Insecurity Vulnerability Status Of Farm Households In Niger- Delta, Nigeria," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(1), pages 1-15, January.
    18. Koomson, Isaac & Annim, Samuel Kobina & Peprah, James Atta, 2014. "Loan Refusal, Household Income and Savings in Ghana," MPRA Paper 58049, University Library of Munich, Germany.
    19. Emmanuel Tetteh Jumpah & Abdulai Adams, 2020. "Resolving the Constraints in Accessing Microcredit: The Neglected Views of the Smallholder Farmers," International Journal of Social and Administrative Sciences, Asian Economic and Social Society, vol. 5(1), pages 1-15, March.
    20. Marie Godquin & Manohar Sharma, 2005. "If only I could borrow more! Production and consumption credit constraints in the Philippines," Post-Print halshs-00193374, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:phd:dpaper:dp_2004-05. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Aniceto Orbeta (email available below). General contact details of provider: https://edirc.repec.org/data/pidgvph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.