Arbeitspapier
How flexible repayment schedules affect credit risk in agricultural microfinance
Using a unique dataset of a commercial microfinance institution in Madagascar, this paper investigates how the provision of microfinance loans with (in)flexible repayment schedules affects loan delinquencies of agricultural borrowers. Flexible repayment schedules allow a redistribution of principal payments during periods with low agricultural returns to periods when agricultural returns are high. We develop a theoretical framework and apply and estimate an econometric model for the loan repayment behavior of agricultural microborrowers with seasonal and non-seasonal production types. Our results reveal that delinquencies of non-seasonal farmers and seasonal farmers with inflexible repayment schedules are not significantly different from those of non-farmers. Furthermore, we find that seasonal farmers with flexible repayment schedules show significantly higher delinquencies than non-farmers in low delinquency categories, but we also find that this effect disappears in the highest delinquency category.
- Sprache
-
Englisch
- Erschienen in
-
Series: Diskussionsbeitrag ; No. 1404
- Klassifikation
-
Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Agricultural Finance
- Thema
-
Agricultural Credit
Borrowing
Financial Risk
Loan Repayment
Microfinance
Seasonality
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Weber, Ron
Mußhoff, Oliver
Petrick, Martin
- Ereignis
-
Veröffentlichung
- (wer)
-
Georg-August-Universität Göttingen, Department für Agrarökonomie und Rurale Entwicklung (DARE)
- (wo)
-
Göttingen
- (wann)
-
2014
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
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Objekttyp
- Arbeitspapier
Beteiligte
- Weber, Ron
- Mußhoff, Oliver
- Petrick, Martin
- Georg-August-Universität Göttingen, Department für Agrarökonomie und Rurale Entwicklung (DARE)
Entstanden
- 2014
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