Determinants of Repayment in Microcredit: Evidence from Programs in the United States
Many microcredit programs have been created in the United States in the past decade that replicate design features of their counterparts in the third world. Yet few systematic studies have been carried out to examine what determines these programs' loan repayment performance. We attempt to fill this gap by studying the determinants of loan repayment for four of the oldest group-based microcredit programs in the US. Our findings suggest that these programs are faced with a set of social and institutional environments that are both similar to and different from those faced by their third-world counterparts. On the one hand we find that higher levels of education and proximity to the lending agency increase the chances of loan repayment. Low transaction costs for accessing loans and high borrower-costs in the event of default also enhance loan repayment performance. On the other hand key variables such as gender and homogeneity of borrowers are not significantly related to loan repayment. We conclude by examining the implications of these findings for program design in the US. Copyright Joint Editors and Blackwell Publishers Ltd 2002.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 26 (2002)
Issue (Month): 2 (06)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=0309-1317|
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0309-1317|
When requesting a correction, please mention this item's handle: RePEc:bla:ijurrs:v:26:y:2002:i:2:p:360-376. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.