Loan Officers’ Gender and Microfinance Repayment Rates

Berg, Matthijs van den; Lensink, Robert; Juárez, Roselia Servín

doi:10.1080/00220388.2014.997218

Cited by 39 publications

(41 citation statements)

References 28 publications

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“…In other words, they are characteristic of the enabling organizational structures and management systems of commercial, standardized and low-cost models of microfinance implementation with insufficient social-performance monitoring and framework. The external validity of the practice-drift phenomenon is therefore likely to go beyond the specific context of the villages and institution examined here, and have bearing on contexts where similar low-cost models are operating and where analogous institutional practices have been reported (van den Berg et al, 2015;Takahashi et al, 2010). If microfinance is to achieve its social mission there is a need, as illustrated in this article, for new approaches and efforts to understand how commercialization shapes the practice of microfinance in the lives of its clients.…”

Section: Resultsmentioning

confidence: 96%

Understanding Social Performance: A ‘Practice Drift’ at the Frontline of Microfinance Institutions in Bangladesh

Maîtrot¹

2018

Development and Change

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This article examines the role of microfinance staff and procedures in enabling microfinance's social mission. It does so primarily through studying institutional ruling relations and practices in rural Bangladesh. Attempting to move away from the linear and deterministic approaches of impact studies, it ethnographically scrutinizes the everyday practices of implementers. Findings point to the emergence of systemic practices that jeopardize microfinance institutions' potential to perform their social mission. These include low client-selection standards, hard selling of loans and forceful loan renewal, little follow-up on loan use, and abusive and violent client-retention and repayment-collection strategies. This is conceptualized as a 'practice drift' as distinct from the commonly reported 'mission drift'. Rather than stemming from planned, top-down changes in institutional mission and strategy, practice drift emerges from a displacement of decision-making processes to the branches. The article argues that observed changes in microfinance practice are enabled by decentralized structures and management systems that leave the choice of tactics used to achieve targets to the discretion of field staff.

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Section: Resultsmentioning

confidence: 96%

Understanding Social Performance: A ‘Practice Drift’ at the Frontline of Microfinance Institutions in Bangladesh

Maîtrot¹

2018

Development and Change

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“…Therefore, Borrowers" socio-demography, previous attitude and credit record have substantial influences on recovery rate (Baklouti, 2013). Van den Berg, Lensink, and Servin (2015) found that characteristics of loan officer, more specifically their gender, play a significant role on recovery rate. Hsu (2016) qualitative data analysis revealed that social ties among the borrowers are very influential in making repayment decision.…”

Section: Loan Recovery and Defaultmentioning

confidence: 99%

Predicting Likelihood for Loan Default Among Bank Borrowers

Aslam¹,

Kumar²,

Sorooshian³

2019

IJFR

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Poverty is a threat to the world. In its extreme form at any part of the world, it will make endanger rest of the world. In fact, it is the source of crime and the worst form of violence. The poor people do not commit any crime but they get punishment out of being born as a poor that is not controllable in their hand. Microfinance has been designed to eliminate poverty and help marginal and poor people through small income generating activities. The borrowers need capital to materialize their dream, may be in a small amount and microfinance can play important role in this scenario. Through microfinance, small entrepreneurs may acquire necessary inputs to start their business. Both local governments and international agencies are trying to eliminate poverty through microfinance programs, services and guidelines. With this concept, Microfinance has been hosted primarily in Bangladesh. Grameen Bank (GB) has been serving large number of people below poverty level in Bangladesh. However, impact of microfinance is still questionable in several studies. Microfinance used properly and returned back to the lender with stipulated amount and time shows its working effectively for poverty alleviation. Otherwise, there must be loan default and the whole system may be in question. We survey with questionnaire to find out factors contributing to loan default among GB borrowers using binomial logistic regression. The results showed that some factors were crucial for loan default and should be treated properly at the start of lending.

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“…Thus, Reference [33] analyzes how certain aspects of gender relations in Malawi facilitate and constrain the impact of microcredit and found that the new interest in client-led microfinance presents an opportunity. In addition, the authors of [34] conducted a study in Mexico showing that loan officers play a crucial role in improving repayment rates in microfinance, and that male loan officers are more able to induce borrowers to repay than female loan officers.…”

Section: Microcredit Repayment and Gendermentioning

confidence: 99%

Determinants of Repayment among Male and Female Microcredit Clients in the USA. An Approach Based on Managers’ Perceptions

Santandreu¹,

Pascual

Rambaud

2020

Sustainability

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Research on microfinance institutions (MFIs) has normally been focused on developing and emerging markets. However, an analysis of developed countries is also important for foreign MFIs wishing to take advantage of the growth potential of those markets. Therefore, the aim of this article is to determine whether MFIs working in the USA’s market should change or adapt their microcredit policies with respect to women. In effect, there are no studies in the USA supporting the argument that women are a better risk of microcredit than men, or that there are differences in microcredit repayment behavior between women and men. Additionally, it was investigated if the payment behavior of women and men is related to variables such as their age, ethnicity, academic level, marital status, or the characteristics of the microcredits, like purposes, amounts, and payment terms. In the USA, there are not—as in other countries—strong incentives, motivations, or external pressures, other than those that men also have, which influence women to pay their microloans better than men. Then, domestic and international MFIs attracted to enter the USA’s market should review their microcredit policies in relation to women. More research is needed about the microfinance market in the USA.

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Loan Officers’ Gender and Microfinance Repayment Rates

Cited by 39 publications

References 28 publications

Understanding Social Performance: A ‘Practice Drift’ at the Frontline of Microfinance Institutions in Bangladesh

Understanding Social Performance: A ‘Practice Drift’ at the Frontline of Microfinance Institutions in Bangladesh

Predicting Likelihood for Loan Default Among Bank Borrowers

Determinants of Repayment among Male and Female Microcredit Clients in the USA. An Approach Based on Managers’ Perceptions

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