Repayment Rates Research Articles

Influence of Demographic Factors on Loan Portfolio Quality in the Savings and Credit Cooperatives Societies in Tanzania

This study determined the influence of demographic factors on loan portfolio quality in Tanzania, focusing on the Hazina SACCOS. The sample of the study was 134 out of 423 borrowers from Dar es saalam and Dodoma cities, whose loans did not exceed Tanzanian Shillings 5 millions. Only 100 questionnaire sheets were returned. Out of those, only 75 were correctly filled, hence used for analysis. Data analysis took place through descriptive and regression analysis. The study concludes that demographic factors affected loan portfolio in different ways. While female borrowers had higher loan repayment rates than their male counterparts, younger, employed, business operators and married borrowers repaid their loans earlier than their counterparts, which promoted the loan portfolio quality. Borrowers with higher education and more dependents had a loan repayment challenge, which weakened the loan portfolio quality. Therefore, loan profitability relates with demographic factors. In order to promote earlier loan repayment, hence loan portfolio quality, the SACCOS should offer demographic-centric financial products and support programs. The SACCOS should offer loans to meet the employment diversity, including flexible loan terms to accommodate wage-employed, self-employed and other employed members. Tailored financial counseling, flexible loan terms and practical financial management training could help mitigate the negative impacts observed in the study.

The Impact of Digitalization on Credit Risk Management in Microfinance Institutions in Nueva Ecija, Philippines

The study examines the credit risk management practices of lending institutions in rural Nueva Ecija, Philippines, amidst their significant growth and the evolving economic landscape. Given their pivotal role in financial transactions, these institutions face inherent risks which necessitate effective management strategies. Employing a descriptive method, the research identified and evaluated credit risk management practices, focusing on credit analysis and collection policies. The study also assessed the impact of digitalization on these practices within microfinance institutions in the region. Findings indicated that while there was no significant relationship between credit risk management practices and loan collection performance, digitalization emerged as a promising avenue for enhancing efficiency and reducing risks. Metrics such as portfolio-at-risk, on-time repayment rate, and past due rate were used to evaluate loan collection performance. The study underscores the potential of digital tools and platforms in transforming credit risk management, offering opportunities to streamline operations and improve collection policies. It identifies current market challenges and outlines strategies to mitigate risks effectively, thereby enhancing the stability and efficacy of rural lending institutions in Nueva Ecija.

The credit risk management practices of lending companies in Nueva Ecija: Basis for risk mitigating plan

As the Philippine economy works toward greater stability and aims to improve the social and financial well-being of its citizens, the Central Bank of the Philippines must manage and oversee the movement of money across the country. The circulation of money helps to balance inflation and unemployment rates. In the rural areas of Nueva Ecija, Philippines, one can easily observe various establishments where individuals can apply for loans, particularly from lending companies. Over the past years, this type of business has grown, and as institutions that deal primarily with money, they inevitably face significant risks. This study, using a descriptive method, was conducted to examine the different credit risk management practices used by lending institutions in these municipalities, particularly focusing on credit analysis and collection policies. Additionally, the study aimed to assess the loan collection performance of these lending institutions, considering factors such as portfolio-at-risk, on-time repayment rate, and past-due rate. The results showed that the credit risk management practices of these lending companies do not significantly affect their loan collection performance. The study also identified weaknesses in the common practices of these institutions by analyzing the market. These identified shortcomings serve as the basis for the researchers to propose a plan to reduce the impact of unavoidable risks.

The Effects of Monitoring Activities on Loan Defaults in Group-Based Lending Program: Evidence from Vietnam

The aim of this study is to investigate the impact of delegated monitoring by a group leader and peer monitoring by group members on loan defaults in a group-based lending program in Vietnam. The data used in the study were collected from a questionnaire survey of 675 participants involved in a group-based lending program conducted from August to October 2022 in the Mekong River Delta, Vietnam. This group-based lending program employs a unique monitoring system that involves hiring the group leader to supervise the group and encouraging group members to monitor each other. The empirical findings derived from the Probit model indicated that delegated monitoring significantly reduces loan defaults, but there was no evidence supporting the effectiveness of peer monitoring within the group. Additionally, under the delegated monitoring scheme, commissions and group size plays an important role in decreasing loan defaults. The implication of the findings is that the Vietnam Bank for Social Policies (VBSP) could maintain large group sizes to provide incentives for group leaders through commissions to enhance repayment rates.

Review of Literature on Determinants of Loan Repayment Performance in Microfinance Institutions

This article presents a comprehensive literature review on the determinants of loan repayment performance in microfinance institutions (MFIs). The review aims to enhance the understanding of borrower behaviour regarding loan repayment, focusing on socio-economic, institutional, and motivational factors. It synthesises findings from various studies, including the Indian Institute for Mother and Child (IIMC), a nonprofit Indian MFI, to identify critical determinants influencing borrowers' ability to repay loans. Factors such as income stability, education level, financial literacy, and family size are highlighted as significant socio-economic determinants. Loan-specific factors, including loan size, repayment period, and supervision, are also critical. Institutional practices like credit assessment techniques, loan structuring, and technological adoption are examined alongside social factors such as peer pressure, social cohesiveness, and community support systems. Additionally, the review explores borrowers' motivation for taking out additional loans, finding that the drive to reach the maximum loan level positively impacts repayment performance. Empirical evidence suggests that repayment rates increase as borrowers approach their loan limits. The article concludes with recommendations for MFIs to improve their operational strategies by addressing these determinants, thereby enhancing loan repayment rates and contributing to the sustainability and effectiveness of microfinance programs.

Analyzing Determinants of Loan Repayment Performance at Grameen Koota: A Comprehensive Study in Bangalore District

Microfinance institutions (MFIs) are pivotal in promoting financial inclusion by providing financial services to underbanked populations. This study investigates the key determinants influencing loan repayment performance at Grameen Koota, a leading MFI in the Bangalore district. Employing a comprehensive mixed-method approach, the research integrates quantitative analysis of loan repayment data from 50 borrowers with qualitative interviews involving 20 borrowers and five loan officers. The findings indicate that borrower income stability, financial literacy, loan size, and loan duration significantly affect repayment performance. Specifically, higher income stability and greater financial literacy correlate with better repayment rates, while smaller loan sizes and shorter loan durations enhance repayment performance. Qualitative insights emphasize the importance of solid borrower relationships with loan officers and community support systems in addressing repayment challenges. These relationships and support mechanisms are crucial for timely and successful loan repayment. This paper contributes valuable insights into the microfinance sector within the urban Bangalore context, adding to the limited research on repayment determinants in MFIs operating in urban Indian settings. The study suggests that implementing financial literacy programs, offering manageable loan sizes, and fostering robust borrower support systems can significantly improve loan repayment rates. The research highlights the need for MFIs to focus on borrower education and community engagement to enhance financial inclusion and sustainability. This comprehensive analysis of loan repayment performance at Grameen Koota offers practical recommendations for MFIs to improve their operational strategies and better serve their clients, ultimately contributing to the broader goal of financial inclusion and economic development.

Interest subvention for crop loans in India: Win-win or win-lose ?

Interest subsidies on crop loans are a common feature of rural credit markets in developing countries. The objective behind giving interest subsidies is two-fold – increasing access to credit and improving loan repayment rates, and is therefore regarded as a win-win for the borrower and the lender. This study focusses on a policy intervention that provides interest subsidy for crop loans availed under the Kisan Credit Card (KCC) scheme - India's flagship program to provide short-term agricultural credit for farmers. Using a unique dataset from a large public sector bank in India, we evaluate the causal impact of this intervention on both credit access and loan repayment behavior. We also capture the heterogeneous impact of the policy on new and existing borrowers. The results of econometric analysis - a combination of matching and difference-in-difference techniques - show a substantial increase (35%) in new loans, in addition to 20% decrease in the overall loan amount, indicating increased breadth and depth of access. However, contrary to standard economic theories, we observe a reduction in odds of repayment. Further, we find that the interest rate subsidy worsens the repayment rates of existing borrowers too. Our findings underscore the importance of various operational and behavioral aspects of the agricultural lending ecosystem to design win-win credit policies.

Microcredit, gender norms, and women’s experiences of economic coercion and agency in Matlab, Bangladesh

Microfinance organizations in Bangladesh often direct microloans to women, due in part to women’s high repayment rates. Questions remain about how microfinance institutions are addressing – or enabling – economic coercion of women taking out loans. In-depth interviews with 25 men and 24 women examined how the structure of microcredit programs, and men’s reactions to such structures, enabled or challenged women’s economic agency. We found that loan access and control was gendered, that loans were socially disruptive and engendered shame among men and women, and that this social disruption and shame was managed through practices of concealment. Interviews revealed that inequitable gender structures governing microloan administration are impeding gender transformative experiences with microloans. The results of this study illustrate the importance of considering structural and normative elements of gender systems to understand women’s experiences of economic agency and coercion around microloans.

Understanding Students Attitudes and Intentions to Repay Loans: A Comprehensive Study

This research aims to conduct an in-depth study on students' attitudes and their intentions regarding the repayment of loans. Recognizing the importance of understanding the factors that influence students' willingness and ability to repay loans, this study utilizes a mixed-methods approach to explore the intricate relationship between attitudes, financial behaviors, and loan repayment intentions among student borrowers.
 The study employs qualitative research methods, including interviews, focus group discussions, and case studies, to gather nuanced insights into students' attitudes towards loans, their financial decision-making processes, and the factors influencing their intentions to repay loans. Concurrently, quantitative surveys and data analysis will be used to identify trends, correlations, and statistical patterns related to student borrowing and loan repayment behaviors. Various dimensions will be explored, including the impact of financial literacy, economic circumstances, and educational experiences on students' attitudes towards loans. The study also aims to uncover the perceived barriers and facilitators that influence students' intentions to fulfill their financial obligations post-graduation. The findings from this research are expected to provide valuable insights for educational institutions, policymakers, and financial institutions. By understanding students' attitudes towards loans and their intentions to repay, stakeholders can develop targeted strategies to enhance financial education, improve loan repayment rates, and foster responsible financial behaviors among student borrowers. This study serves as a foundation for informed decision-making and future research within the realm of student loan attitudes and repayment intentions.

Analysis of settlements with debtors based on the quality indicatorof turnover.

The aggravation of relations in the field of global finance, the change of international partners and disruption of international economic relations cause the need to strengthen payment discipline and accelerate payments, which is especially important in the context of the expansion of new associations of states. The consequences of the COVID-19 pandemic have also led to a reduction in the liquidity of organizations and increased the need for funds. Timely repayment of accounts receivable increases the availability of cash to suppliers, and the acceleration of settlements contributes to an increase in available funds, which makes it possible to use them additionally in commercial turnover. The purpose of the study was to improve the system of settlements (based on their turnover) with debtors and rational distribution of the terms of cash refunds using the matrix method. The existing systems for assessing financial and cash flows in settlements with debtors and the indicators used for this purpose do not always express the dependent relationship between the growth of sales revenue, the turnover of accounts receivable and the degree of its repayment. In this regard, the objective of the study was to improve the existing indicators of the analysis of accounts receivable. The article examines the methods of accounts receivable management integrated into the system based on a client- oriented approach. In the course of the work the methods of comparison, statistics, mathematical modeling were used. A system for tracking the balances of accounts receivable, comparing them with sales volumes and turnover indicators is proposed. The author formulated the concept of the cycle of accounts receivable circulation. It is revealed that the use of indicators of turnover of accounts receivable and sales volume do not accurately reflect the quality of repayment of accounts receivable, their interdependence and do not disclose the possibility of additional release of funds from settlements with debtors. To solve this problem, a new indicator has been introduced — the rate of repayment of receivables. An approach is proposed to substantiate the expediency and feasibility of accelerating payments based on the elasticity of revenue or proceeds from the sale of products, works and services to the rate of repayment of receivables. The results of the research were the creation of a system for tracking receivables balances and comparing them with sales volumes and turnover indicators, which can be useful for organisations selling products, works and services under credit agreement to accelerate cash receipts.

Bank Credit and Loan Repayment Rates During Covid-19 In Kabale District: A Case of Lyamujungu Sacco

The objective of 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. The loan manager said the situation was getting worse and there was almost no ability to repay the loan. This has to do with the borrower's personality, solvency, and credit history. Members will flee from SACCO if the situation persists. The objectives of the study are:To establish the effect of borrower characteristics on loan repayment during COVID-19 in Lyamujungu SACCO, Examine the impact of borrower's loan solvency on repayment during the COVID-19 pandemic in Lyamujungu SACCO and Determining the effect of borrower's credit term on repayment during the COVID-19 pandemic at Lyamujungu SACCO. 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 (1970) cited in Amin (2005). 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. The simple stochastic method is suitable for large numbers like SACCO customers. 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) for " The average score of the borrower's character during the repayment period", "The average score of the borrower's capacity during the repayment period" and "The average score of the borrower's credit periods during the repayment period debt" respectively. 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. The study recommends that SACCOs conduct a pre-customer assessment before granting a loan and an ongoing review process before and during loan repayment. This way, the bank will be able to know the exact trajectory of the borrower's performance in terms of repayment. This should be reinforced by effective customer relationship management, where the bank acts as more than just a source of credit

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.

Impact of Monitoring Activities and Social Ties on the Repayment Problems of group-Based Lending-Evidence from Vietnam

This study examines how monitoring activities by group leaders and social ties within groups influence repayment rates in the Vietnam Bank for Social Policy’s group lending program in the Mekong Delta. Data used in this paper was obtained from a survey of 675 members from lending groups in 5 provinces in the Mekong Delta in September 2022. The analysis finds a negative relationship between the leader’s social ties and repayment rates, implying that strong social ties might hinder enforcement. However, the impact of leader monitoring, member-level monitoring, and social ties was not statistically significant. Interestingly, group characteristics like size and regulations may play a more significant role in reducing repayment problems.

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.

Role of Microfinance and Self Help Groups in Rural Women Empowerment – A Study of Two Sub district under Mahisagar District, Gujarat

Being the most important program in the SHG movement in India, NABARD started the pilot phase of SHG Bank Linkage Program in February 1992. This was the first example of a viable SHG financed directly by a commercial bank. Informal saving and borrowing groups of the poor were recognized as bankable customers. Soon after the SHG-bank linkage was in place, RBI advised commercial banks to consider lending to SHGs as part of their rural credit operations. Linking SHGs with the financial sector was good for both sides. Because banks were able to enter the money lending market, borrowers were lower income families, household costs were lower, and repayment rates were higher. By joining SHGs they were able to expand their operations with more credit and they had productive surplus funds for more credit. (Reddy and Maneck, 2005). This research paper attempts to examine the impact of microfinance in the context of poverty alleviation and socio-economic empowerment of women. Help empower women through microfinance by supporting women's economic participation, thus promoting gender equality and improving household welfare. To study the role of microfinance and self-help groups (SHGs) in women empowerment, Santrampur and Virpur sub district of Mahisagar district have been selected, for the present study a total of 20 SHG organizations have been selected from these two sub district and Out of these 20 SHGs, 150 respondents have been selected for the research. has been selected to start the job. Here tabular analysis has been used to analyze the data collected from local survey reports.

The making of Homo Honoratus: From omission to commission

AbstractThis study investigates how people's tendency to avoid action, known as “omission bias,” influences their financial decisions, specifically in the context of debt repayment to the UK government. Using a randomized controlled trial, we communicated with individuals who owed money, employing two distinct message framings. The omission‐framed message suggested that nonresponse was seen as inadvertent, while the commission‐framed message treated nonresponse as a deliberate choice. Analyses of nearly 40,000 responses revealed that repayment rates almost doubled with commission framing, reaching 23.2%, as opposed to 12% under omission framing. This reframing strategy generated over $1.4 million in additional revenue, underscoring the considerable real‐world impact of understanding and leveraging the omission bias in shaping financial behaviors.

МЕТОДИЧНІ ТА ПРАКТИЧНІ АСПЕКТИ КРЕДИТНОЇ ПІДТРИМКИ ОНОВЛЕННЯ ОСНОВНИХ ЗАСОБІВ ПРОМИСЛОВИХ ПІДПРИЄМСТВ

Purpose. In market conditions of business, the competitiveness of enterprises is largely determined by the condition of their fixed assets. The need to replace outdated technologies and equipment with modern ones requires the availability of appropriate financial resources. Inadequacy of own internal sources of investment for the renewal of fixed assets encourages enterprises to widely use external, in particular, credit. At present, in the economic theory and practice of management, there is no clearly developed mechanism for investing in the renewal of fixed assets with the involvement of credit resources. Inadequate development of such issues as the choice of a profitable loan option, the optimal loan rate, the terms and conditions of loan repayment, calls for the development of methodical and practical approaches to effective investment in the renewal of the fixed assets of enterprises. Design/methodology/approach. The article uses the discounting method and the balance sheet method for calculating and analyzing the parameters of the process of attracting credit resources. The method of economic-mathematical modeling was used to study the influence of the use of borrowed funds in investing in the renewal of fixed assets on the pace of development of production potential. Findings. The article considers a number of problems of a methodological and practical nature regarding investment support for the renewal of fixed assets of enterprises, in particular with the involvement of credit resources. The parameters of the loan attraction process, which determine its effectiveness for the enterprise, are analyzed. The most important of these parameters include: the term of the loan; interest rate for the loan; loan payment amounts. To determine the size of the payment for the loan, the appropriate ratio based on the use of compound interest was considered. Derived dependencies for calculating the annual payment for the loan, the annual payment from one monetary unit of the loan, as well as the total amount of funds that must be paid for the entire period of the loan. The values of these parameters are calculated depending on the value of the credit rate and the credit term, which makes it possible to quantitatively assess their trends. The results of the calculations are presented in tabular form. The impact of attracting credit funds in investments for the renewal of fixed assets was studied by modeling this process. An approach to determining the marginal interest rate at which it is still profitable for the enterprise to attract loan funds is proposed. For this purpose, appropriate computer calculations were carried out. Calculations were carried out for the option of fixed assets renewal with own funds, as well as with the involvement of a loan at various interest rates. An important conclusion was made that the dynamics of production development depends on the relationship between the interest rate and the growth rate of capital investments in the basic version, when production development is carried out only at the expense of own investment funds. Practical implications. The methodical and practical results obtained in the research process can be used in the selection of credit support options for the renewal of fixed assets and the development of specific measures aimed at improving the investment activity of industrial enterprises. Originality/value. The article quantitatively evaluates the parameters of credit support for the fixed assets renewal of enterprises. By means of economic-mathematical modeling, the impact of attracting loan funds on the dynamics of changes in the production potential of the enterprise was analyzed.

Analyzing the Effects of Credit Management Practices on Loan Repayment Performance of Microfinance Institutions in Makamba, Burundi

The ability to obtain funding is crucial to the success of microfinance institutions. To give credit to micro entrepreneurs, an individual’s credit history and worthiness is pivotal. However, loan payback performance is a barrier. Burundi's financial institutions have collapsed as a result of poor credit management. The purpose of this study was analyzing the effects of credit management practices on loan performance in Microfinance institutions. The study was based on the subsequent goals: to ascertain the impact of client evaluation on loan repayment performance benchmark; to assess how credit risk management control affect MFI loan payback performance; to determine how credit terms affects MFI’ ability to collect loan; and to ascertain how credit collection practices affect MFI loan repayment performance. Ten microfinance Institutions registered in the Makamba province of Burundi were used. Purposive sampling was employed as the sample method in this investigation. Target population of study was 134 and sample size was 100 from using Yamane’s formula. Mean, frequency and standard deviation were also the main descriptive statics employed. Primary data from credit officers, managers’ officers, finance and accounting officers, cashiers, control officers and recovery officers of all microfinance Makamba, Burundi were used. To be utilized to gather main information on credit management techniques, structured questionnaires were used to gather primary data on existing microfinance loan records. The secondary data about the documentation reports related to the loan performance of microfinance institutions for the period 2018-2021 was verified to ensure whether those MFIs recorded loan repayment performance or not. Findings revealed that the Pearson Chi-Square value is 85.226, and the Likelihood Ratio value is 85.656. These values represent the chi-square test statistics for the association between the variables of interest (credit collection policy and loan repayment performance). In both cases, the p-value is 0.000, indicating a statistically significant association between the variables. Multiple linear regressions indicated that client evaluation had the highest positive correlation of 0.141 proves that there existed a positive significant relationship between client evaluation and loan repayment performance while credit risk control had a negative correlation of -0.014, credit terms had no correlation since its beta value was found to be 0.00 and credit collection policy had a negative correlation of -0.014. Evaluating clients' characteristics, such as moral character and creditworthiness, before granting loans is important for microfinance institutions. Microfinance institutions should focus on implementing robust credit risk control mechanisms to mitigate default risk and improve overall repayment rates. There is need for investigate the long-term effects of credit management practices on loan repayment performance by conducting longitudinal studies that track borrowers and analyze their repayment behavior over an extended period.

Gendered investment differences among smallholder farmers: evidence from a microcredit programme in western kenya

The advent of microcredit programmes in sub-Saharan Africa provides opportunities for rural households to acquire agricultural inputs and consumer goods. This study analysed gender differences in investment behaviour and repayment performance using a unique dataset—the complete client database (21,386 clients) of a microcredit programme operating in Western Kenya. Products purchased via the microcredit programme include seeds, fertilisers, post-harvesting technologies (drying sheets, storage bags, and pesticides), chicken feed packages, and different solar panel products. A machine learning-based basket analysis identified combinations of products purchased by male and female clients. Our results showed that female farmers usually made smaller investments, had higher repayment rates, and purchased more post-harvesting technologies than male farmers. In addition, female farmers used their loans to purchase less expensive products, whereas male farmers usually purchased more fertiliser and expensive solar panel products. The basket analysis revealed that female farmers purchased multiple products simultaneously more often than male farmers did. Finally, households without mobile phones had low repayment capabilities. Collectively, our findings show that microcredit programmes serving smallholder farmers can capitalise on their business data to learn about their clients’ gendered investment preferences and repayment behaviour.

The Effect of Using Financial Information Service System (SLIK) on Bad Credit Rate in Fintech Peer to Peer Lending

The development of Fintech Peer to Peer Lending (P2P Lending) in Indonesia is very rapid in supporting increased financial inclusion. Along with the increase in the value of loans disbursed through P2P Lending, the ratio of bad loans or what is often referred to as Non Performing Loans (NPL) also continues to increase. Literature review article "Can the Use of a Financial Information Service System (SLIK) Affect the Level of Bad Credit in Fintech Peer to Peer Lending?" is a scientific article that aims to build a research hypothesis on how one variable influences other variables. The method used in writing this literature review article uses the library research method. The sources used as material for research are through available data from the website of the Otoritas Jasa Keuangan (OJK) & Asosiasi Fintech Pendanaan Bersama Indonesia (AFPI), academic online media, Google Scholar, Mendeley, and other online media. The results of this study provide information that can be used in efforts to minimize the occurrence of an increase in credit risk (NPL) in the P2P Lending industry, namely by taking preventive steps by making an effective creditworthiness assessment to prospective loan recipients through analysis of credit information data obtained from Sistem Layanan Informasi Keuangan (SLIK). Therefore, as an effort to restrain the rate of increase in the number of bad loans in the P2P Lending industry, a tool is needed to carry out an effective credit scoring (credit scoring) by integrating P2P Lending credit loan data into SLIK so that more credit data of prospective loan recipients can be obtained. comprehensive. More comprehensive data can provide more accurate results on credit scoring, and have a positive impact on loan repayment rates.