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 the...
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| Format: | Article |
| Language: | English |
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Elsevier
2012
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| Online Access: | https://repo.uum.edu.my/id/eprint/18082/1/Procedia%20-%20SBS%2062%20%202012%20%20806%20%E2%80%93%20811.pdf |
| _version_ | 1803627495179681792 |
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| author | Nawai, Norhaziah Mohd Shariff, Mohd Noor |
| author_facet | Nawai, Norhaziah Mohd Shariff, Mohd Noor |
| author_sort | Nawai, Norhaziah |
| collection | UUM |
| 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 responden ts 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 o f a formal specialized microfinance banking institution to cater for the financial needs of micro and small entrepreneurs, especially in Malaysia. |
| first_indexed | 2024-07-04T06:06:58Z |
| format | Article |
| id | uum-18082 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:06:58Z |
| publishDate | 2012 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | uum-180822016-06-07T07:49:27Z https://repo.uum.edu.my/id/eprint/18082/ Factors affecting repayment performance in microfinance programs in Malaysia Nawai, Norhaziah Mohd Shariff, Mohd Noor HG Finance 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 responden ts 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 o f a formal specialized microfinance banking institution to cater for the financial needs of micro and small entrepreneurs, especially in Malaysia. Elsevier 2012 Article PeerReviewed application/pdf en cc_by https://repo.uum.edu.my/id/eprint/18082/1/Procedia%20-%20SBS%2062%20%202012%20%20806%20%E2%80%93%20811.pdf Nawai, Norhaziah and Mohd Shariff, Mohd Noor (2012) Factors affecting repayment performance in microfinance programs in Malaysia. Procedia - Social and Behavioral Sciences, 62. pp. 806-811. ISSN 18770428 http://doi.org/10.1016/j.sbspro.2012.09.136 doi:10.1016/j.sbspro.2012.09.136 doi:10.1016/j.sbspro.2012.09.136 |
| spellingShingle | HG Finance Nawai, Norhaziah Mohd Shariff, Mohd Noor Factors affecting repayment performance in microfinance programs in Malaysia |
| title | 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_short | Factors affecting repayment performance in microfinance programs in Malaysia |
| title_sort | factors affecting repayment performance in microfinance programs in malaysia |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/18082/1/Procedia%20-%20SBS%2062%20%202012%20%20806%20%E2%80%93%20811.pdf |
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