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Citation Information

Type Journal Article - journal of International Academic Research for Multidisciplinary
Title Effects of Borrower Characteristics on Loan repayment in the Credit with Education Programme in the Temale Metropolis of Ghana
Volume 2
Issue 9
Publication (Day/Month/Year) 2014
Page numbers 420-433
URL http://www.jiarm.com/OCT2014/paper17742.pdf
Governments and development agencies have used several microfinance programmes to fight poverty. However, these programmes can only be sustainable if loans are repaid, because non-payment of loans can deny the poor of access to future credit, and reduce the interest income, profits and on-lending funds of financial institutions whose major asset is loans. This study examined the effects of borrower characteristics on loan repayment of participants in the Credit With Education Programme (CWE) implemented in the Tamale Metropolis. Cross sectional data collected from 375 borrowers were analyzed using a logistic regression model. Results of the estimation indicate that repayment is positively influenced by age, access to market and number of loans received but negatively influenced by household size of borrowers. The study recommended replication of the CWE programme by other MFIs, but called for intensification of screening of borrowers by peers and increased education on market access by the MFIs.

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