This paper provides empirical analysis of microcredit repayment in Southwestern Nigeria.
Multi-stage stratified random sampling procedure was used to collect data from 200 members of
microfinance institutions (MFIs) in the study area. Linear multiple regression was used to determine
the variables that affected microcredit repayment. The mean weekly contribution of the members of
microfinance nongovernmental organizations (NGOs) in groups wasx 772.62 and the mean borrowing
wasx 23, 55.25 per annum. On the average, they pay 90 percent of their microcredit as at when due.
The F-values indicated that the microcredit repayment model had good fit (p = 0.01) with an adjusted
R of o.36. The variables that significantly influence repayment: income, distance between dwelling 2
place and bank, amount of business investment, socio-cultural expenses, amount of loan borrowed,
access to business information, penalty for lateness to group meetings, membership of cooperative
society, number of days between loan application and disbursement and poverty indicator were
analyzed. Poverty was found to hamper repayment. Nevertheless, the study supports findings that
members of microfinance groups are creditworthy. The stud