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Factors Influencing Group Repayment Performance in Haryana: Application of Tobit Model

Author

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  • Feroze, S.M.
  • Chauhan, A.K.
  • Malhotra, Ravinder
  • Kadian, K.S.

Abstract

Microfinance through self-help groups (SHGs) has evolved as a mechanism for social inclusion of the rural poor. This paper has identified the factors that influence the repayment performance of the SHGs in India, by conducting a study on a sample of 120 SHG members from 60 dairy SHGs and 60 non-members selected from the state of Haryana. Results of Tobit regression have shown that peer monitoring, group size and female percentage have positive influence, whereas homogeneity and loan amount have negative influence on the repayment performance of the SHGs. The study has concluded that if the essence of self-help and cooperation is fostered and monitored properly, the poor can also repay.

Suggested Citation

  • Feroze, S.M. & Chauhan, A.K. & Malhotra, Ravinder & Kadian, K.S., 2011. "Factors Influencing Group Repayment Performance in Haryana: Application of Tobit Model," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 24(1), June.
    • Handle: RePEc:ags:aerrae:109416
    DOI: 10.22004/ag.econ.109416
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    References listed on IDEAS

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    Cited by:

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    2. Bhatnagar Deepali & Yadav Kajal, 2023. "A Study on Loan Delinquency of the Self Help Group-Bank Linkage Programme in Rural Rajasthan," Folia Oeconomica Stetinensia, Sciendo, vol. 23(2), pages 86-101, December.
    3. Bilau, José & St-Pierre, Josée, 2018. "Microcredit repayment in a European context: evidence from Portugal," The Quarterly Review of Economics and Finance, Elsevier, vol. 68(C), pages 85-96.
    4. Farah NAZ & Sarah SALIM & Ramiz ur REHMAN & Muhammad Ishfaq AHMAD & Rizwan ALI, 2019. "Determinants of financial sustainability of microfinance institutions in Pakistan," Upravlenets, Ural State University of Economics, vol. 10(4), pages 51-64, September.
    5. Paul Okello Atieno & George Moseh & Nicholas K. Ombachi, 2021. "The role of Self-Help Groups’ Structures in Uplifting the Livelihoods of Households in Nyakach Sub County of Kisumu County, Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(6), pages 239-246, June.
    6. Kamaluddin, Amrizah & Hadi, Nabawiyah Abdul & Alam, Md. Mahmudul & Adil, Mohamed Azam Mohamed, 2019. "Social Collateral Model for Islamic Microfinance," SocArXiv ya8ft, Center for Open Science.

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