An Empirical Analysis of Micro Credit Repayment in Northern Sri Lanka

 

Rathiranee Yogendrarajah and Semasinghe D.M

 

Review I Published January,2016

 

Pearl Journal of Management, Social Science and Humanities Vol. 2 (1), pp. 10-16

ABSTRACT

This study provides an empirical analysis of microcredit repayment in Sri Lanka. Multi-stage stratified random sampling technique was used to collect the data from 337 women members of microfinance institutions (MFIs) in the study area that were five districts of Jaffna, Kilinochchi, Mannar, Mullaitivu and Vavuniya have been selected for gathering information regarding repayment of microcredit loan and the factors which influence on repayment which were amount of loan, loan interest, decision making in household level, control over resources and loan management. Linear multiple regression was used to find out the variables that affected micro credit repayment. However the variables of decision making influenced lower level than other variables and control over assets significantly negatively influenced on repayment and the other variables that significantly influenced on repayment of loan (P<0.05) at 0.05 level. It is concluded from the results that if women have more decision making power and control over assets in household level the repayment will be high.

Key words: Control over Assets, Decision Making, Loan Interest, Loan Management, Micro Credit and Repayment.

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