Abstract
Economic growth and development is a dream without having well focused and effective
strategies to eradicate poverty through extending credits to women. The mobilization of
funds comes directly from the participant's savings and therefore the use of funds is under
group scrutiny. This paper aims to examine the repayment problems of women borrowers
of microfinance. A sample of 100 respondents comprising 20 groups were interviewed.
The groups utilized self-selection of members so that a strong degree of promise, trust
and consent exists among members. Limited amount of loan and procedural hurdles were
found to be the two major problems in group loans. The strengthened social ties and trust
in groups reduce the repayment problems to a large extent. In addition the study noted
that groups that were formed by the borrowers themselves had less repayment problems.
Surprisingly, group members belonging to different levels of education and income groups
had lesser repayment problems. The present study therefore recommends that microfinance
institutions in targeting women should improve and smoothen the loaning procedure,
extend higher credit limits to socially heterogeneous groups.
Umara Noreen, Prof. Dr. M. Iqbal Saif. (2011) Group Loans Repayment Problems of Women Borrowers, Journal of Independent Studies and Research-Management, Social Sciences and Economics, Volume-09, Issue-1.
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