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

Author

Listed:
  • Emilio M. Santandreu

    (OUR Microlending LLC, Miami, FL 33134, USA)

  • Joaquín López Pascual

    (Departamento de Economía de la Empresa, Universidad Rey Juan Carlos, 28032 Vicálvaro (Madrid), Spain)

  • Salvador Cruz Rambaud

    (Departamento de Economía y Empresa, Universidad de Almería, 04120 Almería, Spain)

Abstract

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.

Suggested Citation

  • Emilio M. Santandreu & Joaquín López Pascual & Salvador Cruz Rambaud, 2020. "Determinants of Repayment among Male and Female Microcredit Clients in the USA. An Approach Based on Managers’ Perceptions," Sustainability, MDPI, vol. 12(5), pages 1-17, February.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:5:p:1701-:d:324667
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    1. Olexandr Yemelyanov & Tetyana Petrushka & Anastasiya Symak & Olena Trevoho & Anatolii Turylo & Oksana Kurylo & Lesia Danchak & Dmytro Symak & Lilia Lesyk, 2020. "Microcredits for Sustainable Development of Small Ukrainian Enterprises: Efficiency, Accessibility, and Government Contribution," Sustainability, MDPI, vol. 12(15), pages 1-32, July.
    2. Salvador Cruz Rambaud & Joaquín López Pascual & Roberto Moro-Visconti & Emilio M. Santandreu, 2022. "Should gender be a determinant factor for granting crowdfunded microloans?," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-13, December.
    3. Salvador Cruz Rambaud & Joaquín López Pascual & Emilio M. Santandreu, 2023. "A socioeconomic approach to the profile of microcredit holders from the Hispanic minority in the USA," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-25, December.

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