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

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.


Issue Date:
2011-06
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/109416
Published in:
Agricultural Economics Research Review, Volume 24, Number 1
Page range:
57-66
Total Pages:
9
JEL Codes:
Q13; Q14




 Record created 2017-04-01, last modified 2017-08-26

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