Document Type
Article
Abstract
This paper investigate the determinants of microcredit repayment by employing the logistic regression on micro-business households in Pati, Central Java. The result of this study reveals that loan repayment affected significantly by the business lines, food consumption spending, side job, other loan sources, collateral, and credit constrained. Interestingly, the result concludes that the loan repayment are no longer influenced by moral hazard, since the characteristics such as gender, education level, age, experience do not significantly encourage borrowers to repay. This paper also conform the important role of peer-screening process on hindering the credit default.
Recommended Citation
Farida, Farida; Siregar, Hermanto; Nuryartono, Nunung; and KP, Eka Intan
(2016)
"DETERMINANT OF MICROCREDIT REPAYMENT,"
Bulletin of Monetary Economics and Banking: Vol. 19:
No.
1, Article 3.
DOI: https://doi.org/10.21098/bemp.v19i1.600
Available at:
https://bulletin.bmeb-bi.org/bmeb/vol19/iss1/3
First Page
57
Last Page
80
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Country
Indonesia
Affiliation
Bogor Agricultural University
