n African Journal of Business and Economic Research - Determinants of repayment performance of individual borrowers from microfinance institutions : evidence from Tunisia

Volume 3, Issue 1
  • ISSN : 1750-4554
  • E-ISSN: 1750-4562


This study reports the results of a survey of 328 clients of two microfinance institutions in Tunisia, adopting an ordered Logit model to take account of the delay of repayment. The results show that the repayment performance is positively influenced by the following factors : the age of the borrower, the nature of business, the borrower's business experience, the length of repayment period, the degree of credit rationing, the overall wealth of the borrower, and the lending practices of the microfinance institution. The following factors negatively impact repayment performance : the legal status of the business, the guarantor, the rate of indebtedness of the borrower, the loan size, and the presence of other lending institutions. The implications of the results for microfinance strategies are discussed.

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