Demographic factors and repayment performance of NBFI customers in Kuching

Chong, Fennee; Morni, Fareiny; Suhaimi, Rosita

doi:10.1109/cssr.2010.5773748

Cited by 9 publications

(12 citation statements)

References 9 publications

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“…Therefore, there is no evidence that gender and age will significantly affect loan repayment performance among SMEs in Malaysia as H1 and H2 were rejected. This result is similar with the outcomes of Chong, Morni, and Suhaimi (2010) and Nawai and Shariff (2013) where the result showed either a male or a female borrower does not have any influence on the loan repayment performance. Besides, in this study, age has no significant impact on loan repayment performance which is consistent with the study of Brehanu and Fufa (2008).…”

Section: Fromsupporting

confidence: 80%

“…Eze & Ibekwe, 2007;Nawai & Shariff, 2013;Roslan & Karim, 2009) have tested borrowers' characteristics such as gender, age and level of education on loan repayment performance. Studies conducted by Chong, Morni and Suhaimi (2010) and, Nawai and Shariff (2013) showed that either male or female borrower does not have any impact on loan repayment performance. Roslan and Karim (2009) and, Wongnaa and Vitor (2013) have made an implication that female borrowers have higher loan repayment rate compared to male borrowers because lending to females leads to economic empowerment and, able to inhibit hard work and financial discipline culture in them.…”

Section: Literature Reviewmentioning

confidence: 99%

“…High rates of loan default are common in institutional credit. Chong, Morni, and Suhaimi (2010) also find that 55% of the borrowers did not pay on time in their study of the repayment performance of Non-Bank Financial Intermediaries (NBFI) Customers in Kuching. Most of the NBFI such as SME bank, Bank Simpanan National, Bank Rakyat and Agrobank are involved in lending to SMEs and individuals who have potentials but are having problems in obtaining financial services from the conventional lending institutions.…”

Section: Introductionmentioning

confidence: 99%

“…He claims that poor loan repayment performance in developing countries has become a key problem in credit administration, especially to smallholder farmers who have limited collateral capabilities. Since the loans are not secured by collateral, these MFIs generally exposed to credit risk (Chong, Morni, & Suhaimi, 2010). High rates of loan default are common in institutional credit.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Determinants of Microfinance Repayment Performance: Evidence from Small Medium Enterprises in Malaysia

Shu-Teng¹,

Zariyawati²,

Suraya-Hanim³

et al. 2015

IJEF

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Microfinance was introduced in Malaysia to provide financing services to the poor and Small Medium Enterprises (SME) to start up business. The borrower may use the facility to finance business activities such as to purchase assets and additional capital to expand their business. Microfinance helps SME that have limited access to get loan from financial institutions. Financial institutions specifically commercial bank refuse to provide microfinance facilities to SME due to the high default rate among the majority of borrowers who obtain loan without collateral. In addition, the percentage of non-performing loan (NPL) of microfinance in Malaysia has been increasing. Therefore, the objective of this research is to analyze the determinants of SMEs loan repayment performance in Malaysia. Results showed that there are four variables with significant relationship towards loan repayment namely educational level, business experience, amount of loan and loan tenure.

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Section: Fromsupporting

confidence: 80%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Determinants of Microfinance Repayment Performance: Evidence from Small Medium Enterprises in Malaysia

Shu-Teng¹,

Zariyawati²,

Suraya-Hanim³

et al. 2015

IJEF

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show abstract

“…They advanced the propensity of economic empowerment of females emanating from credit extension and behavioral characteristics of hard work and culture of discipline as the likely reasons of satisfactory loan recoveries from females. However, Chong, Morni and Suhaimi [20]; and Nawai and Shariff [19] hold the view that either male or female borrower does not have any impact on loan repayment performance.…”

mentioning

confidence: 99%

Determinants of Loan Defaults in Some Selected Credit Unions in Kumasi Metropolis of Ghana

Yeboah¹,

Oduro²

2018

OJBM

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Credit Unions play a pivotal role in the Microfinance Industry in Ghana. They are not only deeply rooted in financial intermediation but also provide favorable terms and conditions in financial products and services to their members compared to banks and other financial institutions. The sustainability of Credit Unions has been threatened by the incidence of loan defaults or non-performing loans. The diagnostics of the causes of loan defaults in Credit Unions become paramount toward sound credit risk management practices. The study relied on primary data. Purposive sampling technique was applied to select 244 Credit Union members. Questionnaires were used for data collection and logistic regression model was adopted. The study utilized Statistical Product and Service Solution (SPSS v. 20) and Stata (v.14) as statistical tools for data analysis. The results reveal that education, loan diversion, monitoring, marital status and income are significant factors that influence loan default. Thus, credit education should be intensified and that effective loan monitoring should be vigorously pursued. Additionally, loan appraisal systems should be robust with the application and development of credit scoring systems that will factor in key variables of loan default.

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The Linkages of Financial Self-Efficacy and Financial Decision Behaviour: Learning from Female Lecturers in East Coast Malaysia

Kusairi¹,

Ahmad²,

Kae³

2020

International Journal of Organizational Leadership

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Demographic factors and repayment performance of NBFI customers in Kuching

Cited by 9 publications

References 9 publications

Determinants of Microfinance Repayment Performance: Evidence from Small Medium Enterprises in Malaysia

Determinants of Microfinance Repayment Performance: Evidence from Small Medium Enterprises in Malaysia

Determinants of Loan Defaults in Some Selected Credit Unions in Kumasi Metropolis of Ghana

The Linkages of Financial Self-Efficacy and Financial Decision Behaviour: Learning from Female Lecturers in East Coast Malaysia

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