Empirical Evidence Impact of Interest Rate on Loan Repayment of Microfinancial Institution in Tanzania
International Journal of Business and Economics Research
Volume 5, Issue 5, October 2016, Pages: 143-148
Received: Sep. 1, 2016; Published: Sep. 6, 2016
Views 10328      Downloads 175
Authors
Ali Othman Abbas, School of Accounting, Jiangxi Unversity of Finance and Economics, Nanchang, China
Zhang Honghui, School of Accounting, Jiangxi Unversity of Finance and Economics, Nanchang, China
Article Tools
Follow on us
Abstract
Microfinance nowadays is about drawing the benefits of modern entrepreneurship downward to those with low incomes relatively than endorse alternatives to free enterprise; “…it is a component of the post-Washington Consensus [30]” also not a substitute to the prevailing attitude. We adopted descriptive assessment techniques, the data were collected through interviewing or administering a questionnaire to a sample of 400 respondents, and analyzed by using SPSS software. There was strong negative correlation between multiple loans and positive corelation between business capacity and extent of higher interest rates charged. The study recommended that the business owner should focus on the level of the business capacity with loan proposed to be taken and make the comparisons of the daily business revenues operation and not the capital of the business initiatives.
Keywords
Microfinance Institutions, Interest Rates, Multiple Loan, Business Capacity
To cite this article
Ali Othman Abbas, Zhang Honghui, Empirical Evidence Impact of Interest Rate on Loan Repayment of Microfinancial Institution in Tanzania, International Journal of Business and Economics Research. Vol. 5, No. 5, 2016, pp. 143-148. doi: 10.11648/j.ijber.20160505.12
References
[1]
Archer, M (1988), Introduction to Economics, 4th Ed, Maurice Archer Books, Canada.
[2]
Bank of Tanzania (2007), Monetary Policy Statement, the Midterm Review.
[3]
Berenbach, S., and Churchill, C. (1997). Regulation and supervision of microfinance institutions: Experience from Latin America, Asia and Africa. Washington, DC: USAID.
[4]
Chijoriga, M. M (2000), “Recital and Sustainability of Micro financing Institutions in Tanzania”, Paper presented at the 3rd International Conference on Africa Entrepreneurship and Small Business Development 28th-29th September, 1999, Journal of Development Studies, Austria, Vol 16/3.
[5]
Christen R. P., and Rosenberg, R. (2000). The rush to regulate: Legal frame work for microfinance (Occasional Paper No. 4). Washington DC: CGAP.
[6]
Daley-Harris, S. (2007), Circumstances of the Microcredit Meeting Operation Report 2007, Washington, DC: Microcredit Meeting Campaign.
[7]
Funkor G. (2000). “Private Business Concerns. About Interest Rates”. Banking and Graphic Newspaper, Accra, Ghana, October 18, p. 11.
[8]
Gallardo, J. (2002). A Structure Exertion for Adaptable Micro Financial Intermediaries: The experience in Ghana and Philippines (Policy research working paper No.2755). Washington DC: World Bank.
[9]
Gulli, H. (1998), Microfinance and poverty, Washington, DC: Inter-American Development Bank.
[10]
Hulme, D and Arun, T. (2009), ‘Microfinance A reader’ Routledge Studies in Development Economics, New York.
[11]
Hulme, D and Moore, K. (2008), ‘Assisting the poorest in Bangladesh: Learning from BRAC’s “Targeting the Ultra-poor” Programme’, in A. Barrientos and D. Hulme (Eds), Community Safeguard in Favour of the Poor and Poorest: Awareness, Guidelines and Performance, London: Routledge.
[12]
Hulme, D. And Mosley, P (1996), Finance along Poverty, London: Routledge.
[13]
Johnson, S. and B. Rogaly (1997), ‘Microfinance and Poverty Reduction’, Oxfam Poverty Guidelines, Oxford.
[14]
Kerlinger, F. N (1973), Institution of Behaviour Investigation, New York: Holt Rinehart and Winston.
[15]
Knott G. (1991), Financial Management, The Macmillan Journalists Ltd”.
[16]
Kothari, R. (1990), Research Techniques (Design and Practice), 2nd Version, New Age International, New Delhi
[17]
Lascelles, D. (2008),’ Microfinance Banana Crust 2008: Risk in a deafening Industry, middle for the study of Financial modernization (CSFI), New York. Accessible http://www.microfinancegateway.org/files/47464_file_CSFI_Microfinance_FINAL.pdf [Accessed January 2015 at 07:15PM]
[18]
Ledgerwood, J (1999), Microfinance Handbook, An institutional and Financial Perspective, The World Bank, Washington, D. C.
[19]
Lipton, M., A. deHaan and S. Yaqub (1997),’Credit and employment for the poor’, politica Internazionale, 5Sep-Oct, 153-66.
[20]
Martin, I and S. Sinha (1998),’Informal credit transaction of microcredit borrowers’, IDS Bulletin, 29(4).
[21]
Meagher, P. (2002) Microfinance regulation in south Africa: A comparative perspective. Development Bulletin, 57, 48-52.
[22]
Monyo, J. M (2004), “Causes Of Debt Collection Problems. In Microfinance Organizations: Case Of Muhembe Business Care”, Journal Of The Institute Of Accountancy Arusha, Tanzania Vol 1/2, 1-2”.
[23]
Morduch, J. (1999). ‘The microfinance promise’, Journal of Economic Literature, XXXVII (December), 1569-614.
[24]
Morduch, J. (2000). ‘The microfinance schism’, Word development, 28(4), 617-29.
[25]
Oyejide, T. A (1993), Financial Liberalization under structure adjustment and its implications for financing small-scale and microenterprises in Nigeria.
[26]
Rutherford, S. (1999), The Poor and their Money, New Delhi: Oxford University Press.
[27]
Safavian, M. S., Graham, D. H., Gonzalez-Vega, C., and Whelan, D. (2000). The state of microfinance activity and regulation in Russia. Small Enterprises Development, 11, 4”.
[28]
Staschen, S. (2003). Regulatory Requirements for Microfinance: A comparison of legal frame works in 11 countries word wide. Eschborn: GTZ.
[29]
Steel, William, E., Ernest, A., Hemala, H., Nissanke, M. (1997). “Informal Financial Markets under Liberalization in Four African Countries.” World Development 25(5): 817-830.
[30]
Stieglitz, J. (1998), Additional Instruments and Broader Aspiration: Affecting Toward the Post Washing Consensus’, Helsinki: 1998 WIDER Annual Lecture January 7.
[31]
Temu, S.(1998), The Impact Of Financial Institutions Reforms On Small And Micro Enterprises Financing In Tanzania: Business Management Review, December 1998, Vol. 5/2, Dar es salaam University Press, Dar es salaam pp. 56-78.
[32]
Titus. M. (2000). Building the Regulatory Frame Work for Microfinance in India. Small Enterprise Development, 11. 4.
[33]
Wright, G. (2000). Microfinance System: Designing Quality Financial Services for the poor. London: Zed Book.
ADDRESS
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
U.S.A.
Tel: (001)347-983-5186