Loan Repayment Research Articles

Salary Disparities in Public Health Occupations: Analysis of Federal Data, 2021‒2022.

Objectives. To assess salary differences between workers within key public health occupations in local or state government and workers in the same occupations in the private sector. Methods. We used the US Department of Labor's Occupational Employment and Wage Survey (OEWS). Referencing previous studies matching Standard Occupational Classification (SOC) codes with health department occupations, we selected 44 SOC codes. We contrasted median salaries in OEWS for workers in each occupation within state or local government with workers in the same occupations outside government. Results. Thirty of 44 occupations paid at least 5% less in government than the private sector, with 10 occupations, primarily in management, computer, and scientific or research occupations paying between 20% and 46.9% less in government. Inspection and compliance roles, technicians, and certain clinicians had disparities of 10% to 19%. Six occupations, primarily in social work or counseling, paid 24% to 38.7% more in government. Conclusions. To develop a sustainable public health workforce, health departments must consider adjusting their salaries if possible, market their strong benefits or public service mission, or use creative recruitment incentives such as student loan repayment programs for hard-to-fill roles. (Am J Public Health. 2024;114(3):329-339. https://doi.org/10.2105/AJPH.2023.307512).

The Causal Relationship between External Debts and Economic Growth in East African Community

Abstract The interest in the causal relationship between external debt and economic growth has increased in the world due to its importance in whether a country is experiencing debt overhang or not. This study attempts to examine the causal relationship between external debt and economic growth in EAC’s founding partner states. The study employs Xtabond2 using a secondary panel data set for the period 1988 to 2020. The study conducted all required econometric tests such as panel data unit root set and overidentification test using Arellano Bond test, Sargan test and Hansen test respectively before proceeding with further regression. The findings reveal the negative impact of external debt on economic growth running from external debt to economic growth with no feedback indicating the debt overhang in these countries. Other moderating variables have shown different impacts on economic growth where the negative impact is revealed from inflation while positive impacts are revealed from gross capital formation, lagged dependent variable, and the square of total external debt. Other variables such as population size have no significant impact which might have been caused by the presence of a square of total external debt while the exchange rate has a short-run impact on economic growth. Therefore it is suggested that the policymaker should ensure that the loan secured is located on the project with a positive net profit to avoid further demand for external assistance on loan repayment. Also, all tax potentials available in these countries should be optimally exhausted to avoid reliance on external financing assistance. Moreover, these countries should ensure that all external debt secured is sustainable and solvency in relation to their economy.

Financing and Investing in Women-led Businesses: Understanding Strategic Profits and Entrepreneurial Expectations by Analysing the Factors that Determine Their Company Success

This paper examines the strategic profits and entrepreneurial expectations that accompany financing and investing in women-led businesses in Kosovo, India, and United Kingdom. Its main goal was to observe what the strategic profits and entrepreneurial expectations were for these businesses, based on consideration of three factors: Factor 1 (Strategic profits and entrepreneurial expectations), Factor 2 (Financing and investing expectations), and Factor 3 (Strategic profits). Were these factors associated with one another when making financing and investment decisions, and which variables should be considered more carefully by businesses to improve performance, survive as a business and stay ahead of competitors, meet stakeholder expectations and achieve strategic profit forecasts? Through data processing (SPSS program for Windows 16) using tests and econometric analysis (descriptive, factorial, reliability, and multiple regression) the model shows that all three factors play a significant role in determining strategic profits and entrepreneurial expectations. However, it is suggested that if staff cannot quickly adapt to changes in the environment, and the managerial skills and correct leadership are not in place to execute ideas that increase profit, ensure the regular repayment of debts and loans, deploy innovative strategies, maintain a company's legal status and evaluate the work of employees, then businesses will struggle to increase their strategic profit and guarantee their market survival when compared to their competitors.

Self Help Groups Members’ Religious Perception and their Relationship between Financial Literacy and Repayment Intention towards Loan: Considerable Focus on Himachal Pradesh (H.P)

The intent of this study is to create a comprehensive model that can identify various factors and examine the impact of financial literacy on loan repayment intentions among members of SHGs in Himachal Pradesh. A conceptual model has been put forward and its validity has been confirmed. In addition to this, a total of 500 questionnaires were distributed, out of which 372 were considered usable. The stability of the proposed model and the testing of research hypotheses were conducted using structural equation modelling. The findings indicate that financial awareness and financial skills are strong predictors of loan repayment intention among SHG members. On the other hand, financial knowledge and financial skills have a relatively weak influence on loan repayment intentions. The results and observations from the interaction with responders indicate that there is a moderate level of importance placed on financial literacy among members of SHGs. An important factor in reducing the rate of outstanding loans in SHGs is the need for members to enhance their financial understanding.

Determinants Of Loan Repayment During COVID-19 Pandemic: Evidence From OMO Microfinance Institution

Determinants Of Loan Repayment During COVID-19 Pandemic: Evidence From OMO Microfinance Institution

Bank Crisis Management Strategies for Leveraging Effective Performance of the Barbados’ Banking Institutions in Times of Crisis

Given a series of turbulences and disruptions that most of the financial institutions in the Caribbean faced in recent years as a result of the 2008 financial crisis, Hurricane Dora, Covid-19 and now the Russia-Ukraine War that induced energy shortages and inflation, this study uses integrative review to evaluate bank crisis management strategies that can be adopted for leveraging effective performance of the Barbados’ banking institutions in times of crisis. To accomplish that, the integrative review of different studies was structured according to five steps encompassing the designation of integrative review objectives and questions, literature search, inclusion/exclusion criteria, quality assessment and data synthesis. In crisis times like during Covid-19, outcomes of integrative review indicated the Covid-19’s devastating effects on the performance of most of the banking institutions in Barbados to have been reflected in the declining deposits/savings, new clients' borrowings and loan repayments. Covid-19 also instigated an increment of non-performing loans and the bank’s market disconnectedness, whilst also undermining the implementation of growth-improvement plans and strategies. As profitability and liquidity crises set in, findings revealed Covid-19 to have disrupted the bank’s seamless operations, as declining bank personnel’s morale, motivation and commitment also affected their performance. To improve the banks' future resilience, most of the reviewed theories and literature proposed the best bank crisis management strategies like the adoption of contingency planning to improve the bank’s future resilience. Besides dedication of reserve resources for managing and mitigating the disruptive effects of unpredicted events, others suggested the essence for the encouragement of a culture of change, flexibility and agility. However, some of the reviewed studies argued that no best bank crisis management practices and strategies emerged from Covid-19 crisis management that can be replicated for managing such similar complex crises in the future. This implies as the banks were significantly overwhelmed by the Covid-19 shocks, it was not practically possible for them to think and rethink to emerge with the immediate best bank crisis management strategies that can be emulated going into the future. Since this suggests most of the banking institutions in Barbados must still explore the best crisis management strategies that can be adopted to improve the banks’ future resilience to withstand all shocks, the study concludes with the suggestion of the Systematic Bank Crisis Management Framework that the banks can adopt going into the future.

The criticality of credit recovery in banking system stability: A GMM estimation

This study examines the criticality of credit recovery on banking system stability in Nigeria using data from 2007 to 2020. The system generalized method of moments (SYS-GMM) was used to analyze the data and determine the presence of cointegrating relationships among the variables. The findings revealed that credit recovery positively and significantly influences banking system stability. It was discovered that the recovery rate positively and significantly impacts the banking system stability in the short and long terms. In contrast, recovery expense only negatively and significantly affects the banking system in the short term. This implies that credit recovery is critical in business endeavors and operations for banks. Hence, the longer the delay in recovering bad debts, the more banks lose the opportunity to earn income from substitute investments, and collateral may lose value. Therefore, this study recommends that banks' management aggressively pursue the repayment of bad loans and maintain favorable and minimal recovery expenses, particularly with external debt recovery agents, to ensure that the cost of recovery is not higher than the amount recovered.

The performance of Islamic and conventional microfinance loans in Afghanistan: The Taliban and beyond

The Afghanistan microfinance industry has witnessed laurels in recent decades, making it crucial to closely monitor its development and sustainability. This study aims to assess the performance of Islamic and conventional microfinance loans in two aspects: first, by examining the occurrence of loan defaults, and second, by distinguishing between loan performance in areas controlled by the Taliban and those outside their control. To accomplish this, we analyze a unique dataset comprising over 9500 borrowers linked to an Afghan microfinance institution during the period spanning from January 2017 to February 2020. Our findings reveal that regions under Taliban control experienced fewer instances of loan defaults compared to areas not under their influence. Additionally, our analysis indicates that borrowers of Islamic loans in Afghanistan default more frequently than borrowers of conventional loans, particularly in Taliban-controlled areas. These observations remain largely consistent when we explore the factors influencing the number of days overdue on loan repayments. Furthermore, our conclusions find further support from both of the microfinance institution's Islamic loan products: business Murabaha loans, available to individuals of any gender, and women Murabaha loans, created as a group lending scheme exclusively for women. The results from this study offer valuable insights into how policy discussions in Afghanistan should be adjusted to facilitate a smooth transition for the microfinance industry.

Bank Credit and Loan Repayment Rates during COVID-19 in Kabale District, Uganda

The study was to investigate the impact of bank credit on loan repayment rates in the Kabale region using Lyamujungu SACCO as the case study. Loan repayment performance at Lyamujungu SACCO has rapidly declined. This study used a cross-sectional survey method to examine, characterize and compare bank credit and loan repayment in Kabale district, using Lyamujungu SACCO as the case study. The sample size for each subject type was determined using the table of Krejcie and Morgan. Out of 150 samples, a sample of 108 people was selected for the study. The researcher used both purported sampling and simple random sampling to select members/clients of SACCO. Based on the results in the table, the null hypothesis for all three variables is rejected, with a significance level of (p = <.000, p = <.040, and p = <.001). This means that there is evidence that the distribution of mean scores for each of the three variables is not the same depending on the borrower's ability to repay. The study concluded that labor productivity growth decreased and therefore, income decreased, investment decreased and affected the borrower's ability to repay loans during the COVID-19 pandemic in Lyamujungu SACCO.

Role of Government Credits Scheme in Supporting Women Entrepreneurs in India: an Empirical Study

Increasingly, women worldwide are starting and running profitable companies because of advancements in educational fields, employment prospects, and economic opportunities. This will transform the standing of women in those cultures and have a positive impact on the financial systems of nations where enterprises are run by women. Nowadays, we have reached a stronger place where the inclusion of women in business is growing rapidly, and there are initiatives underway on a global and national scale to increase community representation in manufacturing enterprises. This is primarily due to a shift in mind - set, a shift away from a traditional mind frame in culture to one that is more contemporary, the courage and risktaking skills of women, the encouragement and collaboration of the community, modifications and mediation in government actions, and the provision of numerous youth empowerment programs to women entrepreneurs. When the new century gets underway, it seems that this will be the age of the businessman in principle and of the female entrepreneur. The study considered 313 women from rural and urban areas of the country to explore different factors that determine the features of government credit schemes in supporting women entrepreneurs in India. It concludes that all factors such as affordability and support, concessions and subsidies, accessibility and loan repayment, and interest on preferences for government credit schemes.

ASSESSING THE FINANCIAL LITERACY AMONG THE ENTREPRENEURS OF FINANCIAL SACCO’S IN RWANDA

The purpose of the study was to assess the financial literacy among the entrepreneurs in financial sacco’s of Rwanda, the descriptive and correlational analysis research designs were used in this study to enable the researcher to collect data, summarize them, present them, and then interpret them for clarification. Based on the specific objective which was to assess the financial literacy among the entrepreneurs in financial sacco’s of Rwanda, From the perceptions of respondents on debt management literacy, indicated that on average, respondents strongly agreed with the statements made because the overall mean is 4.65 and the mean score on a statement about if respondents are confident in their ability to create a personal budget is 4.89 which is strong and standard deviation of 0.40 which is homogeneous, indicated that the agreement with the statement. The respondents also strongly agreed that they understand the concept of interest rates and how it impacts borrowing as indicated by a strong mean of 4.91 and a homogeneous standard deviation of 0.43. From the perceptions of respondents on timely repayment, the respondents strongly agreed that timely repayment of loans is a priority for maintaining good financial collateral evaluation indicated by a strong mean of 4.33 and a homogeneous standard deviation of 0.47 which indicates that the respondents answered the same. They also strongly agreed with statements that understand the importance of making loan payments on time to avoid additional fees, penalties, or damage to credit scores as indicated by a strong mean of 4.17. The results indicate that the adjusted R2 is 0.471 representing 47.1% indicating that the financial literacy components contribute to the loan repayment, while 0.529 representing 52.9% of loan repayment comes from other variables that are not included in the model three. From ANOVA Table shown, the F- test of 39.420 has a p-value = 0.000, indicating that the variables used in the model jointly have a statistical significance as good predictors of loan repayment.

Effects of Digital Credit on Small Business Performance in Obunga, Railways Ward, Kisumu County, Kenya.

Small and Micro Enterprises play an important role in economic development of any nation by harnessing human capital, use of raw materials and technology. They require enough funds to facilitate expansion of operations, develop new products, hire new staff and acquire new facilities. Lack of capital and financing conversely has been identified as a major factor affecting their performance leading to their failures. Innovations in financial technology in the form of digital credit have taken advantage of these financing gaps and have come up with powerful tools to mitigate financing barriers faced by small businesses. This study sought to address the effects of digital credit on small business performance in Obunga, Railways ward in Kisumu, Kenya. The business performance was determined through operating cash flow, Sales volume and Net profit margin. Asymmetric Information theory and Default Risk Theory of Credit were selected to anchor this study. The study adopted descriptive research design. The target population was 454 Small and Micro Enterprises while the sample size was 212 Small and Micro Enterprises. The study adopted both stratified and simple random sampling techniques. Primary data was collected using structured questionnaires and interviews. Secondary data was collected through reviewing available records regarding digital credit and small business performance. The study adopted content validity. The data collected was analyzed using the Statistical package for social sciences version 24.0. Data was analyzed using descriptive statistics. The study findings conclude that the performance of the SMEs could be seen from profit margins, sales when they access digital credit.The study in addition suggests that the fast growth of fintechs had increased the cost of borrowing to SMEs and their repayment problems even though they offer flexible loan contracts to SMEs who have the ability to determine their own preferred loan repayment schedule. The study recommends the managers and owners of SMEs in Obunga ward to adopt an entrepreneurial mind-set that would support their ability to better gain financial access from various financial institutions Based on the study findings, it is also recommended that the government mobile loan institutions should consider lowering the costs involved in lending the credit. Lastly, the study recommends the managers and owners of SMEs in Obunga ward to make use of available flexible repayment options to borrow what their businesses actually require.

Does 401(k) Loan Repayment Crowd Out Retirement Saving? Evidence from Administrative Data and Implications for Plan Design

Does 401(k) Loan Repayment Crowd Out Retirement Saving? Evidence from Administrative Data and Implications for Plan Design

Does 401(k) Loan Repayment Crowd Out Retirement Saving? Implications for Plan Design

Does 401(k) Loan Repayment Crowd Out Retirement Saving? Implications for Plan Design

Determinants of Loan Repayment among Women Entrepreneurs in Oru East Local Government Area of Imo State, Nigeria

The study focused on identifying the factors influencing loan repayment among women entrepreneurs in Oru East Local Government Area of Imo State, Nigeria. The specific objectives involved determining the socio economic characteristics of women entrepreneurs, sources of borrowing, rate of loan repayment, factors affecting loan repayment, and the importance of available loans to the respondents. The study used a simple random sampling technique to select 120 respondents. Primary data were collected through structured questionnaire and personal interviews. Data analysis involved the use of simple descriptive statistical tools such as means, percentages, and frequency distributions, a 4 point Likert scale, Ordinary Least Squares (OLS) regression model, Analysis of Variance (ANOVA), and Pearson Product Moment Correlation (PPMC). The findings revealed that the majority of the respondents were married (67%), young (58%), educated (100%), and experienced in handling financial and non financial issues (83%). Additionally, most respondents had large families that supported their enterprises through cheap labor and the supply of vital business information. The study also found that the majority of the respondents accessed their loans from formal financial institutions and had a moderate repayment rate of 54%. Significant variables influencing loan repayment among the respondents included age, operating costs, experience, income, and value of assets. Furthermore, the majority of the respondents agreed that loan availability benefitted them in expanding existing businesses, diversifying into new business lines, purchasing major inputs, and acquiring major assets. Based on these findings, the study recommended that loans should be extended to individuals with the necessary capacity to interact with formal financial institutions. Financial institutions should provide friendly and flexible policies to support loan repayment and create awareness among clients regarding the proper use of loans. Additionally, the government should consider subsidizing the price of inputs to reduce the financial burden and facilitate prompt loan repayment. These measures would ultimately stimulate the local economy, generate employment, and reduce poverty in the study area.

MODELLING THE BANK CUSTOMER ACTIVITY DURATION BASED ON THE COX ECONOMETRIC SURVIVAL MODEL

The banking sector is constantly evolving, seeking effective ways to attract and retain clients, especially those with high financial potential. One of the ways to achieve this goal is to provide car loans at low interest rates, such as 0.01%. However, the untimely outflow of clients after repayment of the car loan becomes a significant problem for banks leading to the loss of potential income from other banking services. The research aims to evaluate the impact of selling additional banking services on increasing clients' activity duration. The research used statistics on opening new bank clients, whose first product was a car loan at an interest rate of 0.01%, from 2018 to 2022. The dataset included 9,224 records. The Cox proportional hazards model is used to determine the impact of a credit card on the duration of car loan client activity. The analysis of the model coefficients showed that with a credit card, clients closed at a rate of 0.86 of the rate of closing clients without a credit card. However, during the verification of the proportional hazard assumption, it was determined that the credit card's influence level changes significantly over time, indicating the model's inadequacy. The next phase of the study was the search for an influencing parameter that meets all the quality conditions of the Cox model. Having a credit card with at least one transaction was selected. For this model variation, all indicators of model adequacy were met. The coefficient estimation results showed that clients with an active credit card closed at a rate of 0.36 of the rate of closing clients without it. The evaluation of the active credit card impact confirms that selling a credit card allows for an increase in the bank clients' activity duration. However, a critical success factor is the sale of a credit card and its activation. The obtained research results can be used to optimize the bank's marketing and sales strategies, ensure more effective customer retention and increase the bank's profits.

The Significance of Microfinance Establishments on The Growth of Small to Medium Enterprises in Zimbabwe

The study was conducted in the Midlands province of Zimbabwe, focusing on four towns: Kadoma, Kwekwe, Gweru, and Zvishavane. The study examines the establishment of microfinance institutions, which results in the growth of small to medium enterprises. Many SMEs in the Midlands province are finding it difficult to grow their business due to a lack of capital and the ability to access bank loans. The study aimed to determine the significance of microfinance establishments on the growth of small- to medium-sized enterprises in Zimbabwe. A descriptive research design was adopted. The study's sample size was 94 SME owners specialising in agriculture, mining, vending, groceries, beauty salons, auto repairs, transport services, and fast foods in the Midlands province. Data was analysed using Pearson correlation and simple linear regression. The study results showed a strong positive relationship between microfinance loans and Small to Medium Enterprise sales growth, as evidenced by a correlation coefficient 0.989. The results showed that microfinance loans positively affect the profitability of SMEs. The study also found that access to finance, competition, hyperinflation, and high taxes are the challenges affecting SMEs' firm size. The study shows several ways which can be done to improve the growth of SMEs, such as the extension of loan repayment tenure, review of lending policies, and lending SMEs higher packages for accomplishing their projects. The government should implement policies that find ways to reduce inflation, lower tax charges on SMEs, and draft policies that promote the development of SMEs in the country.

Perceived Factors Influencing Repayment of Agricultural Input Loans Among Rice Farmers in Kwara State, Nigeria

Perceived Factors Influencing Repayment of Agricultural Input Loans Among Rice Farmers in Kwara State, Nigeria

Mahindra and Mahindra Financial Services Ltd– A Case Study

Purpose: This paper is about the organizational analysis of Mahindra and Mahindra Financial Services Ltd [MMFSL]. There are investment products with moderate returns and relatively minimal risk. Numerous public sector banks, private sector banks, non-banking financial companies, and other financial organizations provide these investing facilities. From the perspective of investors, this research offers a variety of details about Mahindra and Mahindra's financial services portfolio, the many goods and services they offer, as well as the steps a consumer must take. Design/Methodology/Approach: Companies that provide financial services set their goals, which may include things like customer satisfaction, market expansion, revenue growth, risk management, and regulatory compliance. To enable effective collaboration, decision-making, and accountability, a clear organizational structure is built. This entails evaluating consumer demand, researching the competition, and seeing chances for product innovation or difference. Findings/Result: Over the years, MMFSL's loan book and profitability have increased gradually. The company's financial success is influenced by several variables, such as interest rates, the general state of the economy, and the demand for automobiles and equipment. To lower risk and boost revenue streams, MMFSL has been seeking to diversify its business beyond car finance. They have grown to finance more asset classes like commercial vehicles, used cars, and construction equipment. To improve the convenience and accessibility of loan applications, approvals, and repayments, they have launched a few digital platforms and initiatives. Originality/Value: It primarily focuses on learning about organizations in-depth, including the responsibilities of the organization and competency mapping, to understand how well the firm is working and to examine its current competitors. The proposed work determines the company's liquidity condition. The SWOT analysis framework is used for evaluating the company's strengths, weaknesses, opportunities, and threats. Paper Type: Case Study.

LOAN CHARACTERISTICS & LOAN CREDIT TERMS: DOES IT MATTER IN A MICROFINANCE CONTRACT?

This study examined the relationship between loan characteristics and loan credit conditions on loan repayment issues in order to assist Microfinance Institutions (MFIs) in Pakistan in improving their loan payback performance. The study also examines the link between loan credit terms and problems with loan repayment as well as the mediating function of client-business performance in the relationship between loan characteristics and loan repayment concerns. A measurement model and a structural model were both used in this investigation, which used a two-stage structural equation modelling methodology. The measurement model, also known as the outer model, was employed to evaluate the reliability and validity of the data collection technology. PLS-SEM bootstrapping was performed to test the hypothesis using the structural model (inner model). The results are consistent with the assumption that loan terms and conditions have a positive impact on microenterprise loan repayment concerns. The findings of this study also lend credence to the idea that client-business performance functions as a mediator in the relationships between loan characteristics and problems with loan repayment as well as between loan credit terms and problems with loan repayment. There hasn't been much research done in Pakistan to date on how loan characteristics and loan credit terms directly affect the challenges microenterprises face in repaying loans. The business performance of microenterprises is also investigated in relation to loan features, loan credit terms, and loan repayment issues.