of financial constraints as a result of low levels of demand. Hence, commitment and willingness to pay has been evident when interviewing these borrowers. Had they taken the loan for another purpose such as consumption or preparing for a daughter's wedding as stated by the loan officer, which could not have been known by the interviewer, these borrowers may not have been able to pay on time. At the end these borrowers paid because of their willingness to pay. On the other hand, for those who delayed repaying some of their installments can be divided into two categories. The first are those who are willing to pay but are unable and the second are those who are unwilling to repay the loan even though they are financially capable of paying. Table 12: Loan characteristics of the unsuccessful borrowers Loan characteristics Person F Person G Person H Person I Person J Person K Number of 3 4 2 2 1 1 Current loan amount (in EGP) 4,000 10,000 9,000 9,000 4,000 4,000 Percentage of the project expansion as a result of the loan --- --- 70 35 30 0 Does anyone help you in the project Yes - Kids No No Yes - Husband No No How was the project financed? Inherited Inherited Inherited Husband’s Past savings Past Savings Monthly sales --- --- --- --- --- --- of education Illiterate Illiterate Illiterate Diploma Diploma Illiterate Apartment owned or rented? Own Owns 1- Rents 1 Owns 1- 1 Rent Own Own Health Status Good Good Good Good Good Good Indebted No Yes Yes- 12,000 Yes- 150,000 No Yes
How much is per month --- Medical expenses 800 900 1,200 2000 1,200 Are you part of a RoSCA? If yes what is the monthly RoSCA amount Yes - 10 Yes – 500 Yes - 10 No No No Do you own an account in a bank No No Yes No No No Do you own an account in a post office No Yes No No No No Table 13: Repayment determinants for the unsuccessful borrowers Repayment Questions Person F Person G Person H Person I Person J Person K Are all the installments paid on time No No No No No No Number of delayed installments 2 2 3 3 5 7 Main factor affecting unsuccessful payment Daughter being hospitalized Husband’s illness Hospitalized for 2 months - of equipment from his workshop Claimed lower revenue as a result of lower demand Claimed burnt equipm- ent Claimed poor market conditions
Paxton, J. (2003). A poverty outreach index and its application to microfinance, Economics Bulletin, no.2, pp.1-10. Pollinger, J., Outhwaite, J. and Cordero-Guzman, H. (2007). The Question of Sustainability for Microfinance Institutions. Journal of Small Business Management, no.1, pp. Reta, F. (2011). Determinants of loan Repayment Performance: A case in the Addis Credit and Saving Institution, Addis Ababa, Ethiopia, Wageningen University, Rosenberg, R. (2009). Measuring Results of Microfinance Institutions Minimum Indicators That Donors and Investors Should Track, CGAP,pp. 1-28. Schicks, J. (2010). Microfinance Over-Indebtedness: Understanding its drivers and challenging the common myths, Centre Emile Bernheim Research Institute in Management Sciences. Solvay Brussels School Economics & Management, pp.1-33. Tanmeyah. Tanmeyah Microenterprise Services. 2010. Ties and Successful Performance, University of Chicago, pp.1-55 Triki , M. (2013).The efficiency scores of Microfinance institutions in Africa and MENA region, Research journali’s Journal of Finance , Iss.1, no.1, pp.1-16 Tsai, K. (2004). Imperfect Substitutes: The Local Political Economy of Informal Finance and Microfinance in Rural China and India, World Development, pp. 1487-1507. Varadharajan,S. (2004). Explaining Participation in Rotating Savings and Credit Associations (RoSCAs): Evidence from Indonesia. Microfinance Gateway. Wagner, C. and Winkler, A. (2013). The Vulnerability of Microfinance to Financial Turmoil – Evidence from the Global Financial Crisis. World Development 51, pp.71-90. Waheed, S. (2009). DOES RURAL MICRO CREDIT IMPROVE WELL-BEING OF BORROWERS IN THE PUNJAB(PAKISTAN), Pakistan Economic and Social Review, no.1, pp.31-47. Waly, G. (2008). Microfinance in An Overview, Egyptian Financial Supervisory Authority. Wang, Z. and Rettenmaier, A. J. (2008). Deficits, Explicit Debt, Implicit Debt, and Interest Rates: Some Empirical Evidence, Southern Economic Journal, No. 75, pp. 208-222.