Article Title

DETERMINANT OF MICROCREDIT REPAYMENT

Authors

Farida Farida, UPI YAI JakartaFollow
Hermanto Siregar, Bogor Agricultural UniversityFollow
Nunung Nuryartono, Bogor Agricultural UniversityFollow
Eka Intan KP, Bogor Agricultural UniversityFollow

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