The determinants of loan delinquency in urban microfinance institutions in Cameroon

Joseph Nzongang, Léopold Djoutsa Wamba and Alain Takoudjou Nimpa
Savings and Development Vol. 38(2014), No. 1, pp. 69-88

The Financial Cooperative of African Women, founded to promote female entrepreneurship quickly showed its limitations in terms of loan repayment performance. This study aims at identifying the determinants of loan delinquency rates in this institution. We carry out a logistic regression analysis on the data collected from a sample of 603 cases of loans to members in March 2013. Factors related to the borrower (age and availability of complementary income) and to the institution (amount of loan, duration and loan officer visit during the repayment period) affect the default rate in this institution.

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Issue: 2014 XXXVIII 1
Contributors: Djoutsa Wamba, Léopold   Nzongang, Joseph   Takoudjou Nimpa, Alain   
Keywords: , , , ,