An Empirical Study on Determinants of Loan Repayment Behaviour of SMEs Towards Commercial Banks

India, as a developing economy even after five decades of planning, still has a long way to catch up with the advanced economies of the globe. The goal may be distant, but surely, the time needed to reach can be reduced by accelerating the pace of development. One way of doing this is by the development of industrial and business ventures. There exists a positive relationship between the growth of an economy and the growth of small and medium enterprises (SMEs). SMEs play a vibrant role in the development of an economy. Access to the formal source of credit by entrepreneurs is essential in a growing economy. Lending to SMEs is a risky activity for the banks as repayment of these loans are less guaranteed. The research article attempts to analyse the factors influencing the loan repayment behaviour of SMEs towards commercial banks. Data are collected using the convenience method of sampling from 80 registered SMEs belonging to the manufacturing and service sectors in the Bangalore region, and data are analysed using statistical tools such as correlation and logit regression analysis, conclusions are drawn based on these findings. The study reveals that characteristics of loan and lender influence the repayment to the maximum extent. The findings are helpful for commercial banks in redesigning suitable policies and schemes to reduce loan defaults.

Influence of Covid-19 Pandemic on the Economy of Tokumbo Vehicles Trade in Borno State: Implications for Counselling

The study was an opinion survey that investigated the influence of covid-19 pandemic on the economy of Tokumbo vehicles trade in Borno State, Nigeria. Population of the study comprised of all fairly used secondhand car dealers in the State. However, 150 Tokumbo car dealers constituted the sample. Purposive and stratified random sampling techniques were used in selecting sample. Researchers designed 18 items Structured Interview Schedule (SIS) tagged “Car Dealers Interview Schedule (CDIS)” and Focus Group Discussion (FGD) were the instruments used to elicit data for the study. The CDIS was divided into two parts (A & B). Part A collected information on demographic characteristics of the respondents while Part B elicited data on sources of capital for the Tokumbo dealers, brand of Tokumbo vehicles and the influence of covid-19 pandemic on Tokumbo trade in Borno State, Nigeria. The CDIS was validated by three experts in the field of Business Administration of the University of Maiduguri, Borno State and a coefficient of 0.74 was obtained using Cronbach alpha reliability method for the internal consistency which was considered relevant and adequate for the study. Descriptive statistics of frequency counts, percentage and bar graph were used in analyzing data collected for the study. Three objectives and three research questions piloted the study. Results of the study revealed loan and personal savings as some of the sources of capital for dealers in Tokumbo vehicles in Borno State. Toyota, Volkswagen, Honda, Mercedes Benz and Peugeot were some of the brands of Tokumbo cars in the study area while rent, loan repayment and gross reduction in sales were some of the effects of covid-19 pandemic on the trade in Tokumbo vehicles in Borno State, Nigeria. Based on the findings, implications for counselling, conclusions and recommendations were made.

DETERMINANTS OF MORTGAGE LOAN REPAYMENT IN GHANA

The housing deficit in Ghana is an issue of concern for all. This study sought to analyse the determinants of the repayment of mortgage loans in Ghana. The study used both secondary and primary data. The mixed-method approach was used for the study. The data collection instruments were interviews, focus group discussions and questionnaires. The study revealed that socio-demographic characteristics of respondents, sex distribution of respondents, educational level of respondents, marital status of respondents, occupational status of respondents, household size of respondents, the income of respondents are some of the factors that affect the repayment of mortgage loans in Ghana. The study revealed that borrowers who earned higher income had a better repayment performance as compared to low income earning borrowers. In addition, higher household sizes have lower repayment capacity and lower household sizes have higher repayment capacity. The study recommends that the government of Ghana should institute state bodies responsible for providing liquidity to mortgages and mortgage properties and buying mortgages during periods of rising interest rates is a way of creating a secondary mortgage market for the Ghanaian mortgage industry. Keywords: Determinants, Mortgage, Repayment, Ghana.

Help When You Need It: Sources of Advice for Student Loan Borrowers Across the Life Course

To promote the financial capabilities of student loan borrowers, practitioners must understand the experiences and needs of borrowers across the life course. A national survey ( n = 1,874) conducted by MIT AgeLab explored perceived loan-related effects across the life course and sources of advice for borrowers. Across age groups, repaying student loans had most regularly imposed negative perceived effects on multiple domains of borrowers’ financial well-being. Younger borrowers reported more negative perceived effects of loans across domains, whereas older borrowers reported fewer negative perceived effects. Few participants had sought professional advice about student loan repayment, although younger borrowers were more likely to have sought loan-related advice in general; perceived levels of helpfulness of advice and comfort consulting with contacts were mixed. Financial social work is uniquely situated to act as a resource for multiple generations of student loan borrowers and their families.

A Possibility or Just a Wish? Assessing Current Perceptions on the Potentials of a Full Student Loan Debt Forgiveness Legislation

Burdensome and unmanageable is what student loan repayment has become to almost 45 million Americans who owe a total of about $1.7 trillion in student loans. It is therefore intriguing to find out if a complete student loan debt forgiveness miracle is a possibility or just a wish, based on current perceptions. This study is based on the Three-Policy Window Stream Theory and the Interest Group Theory. Four mini-focus interview groups were created and their responses were analyzed using the Grounded-Theory Technique. From our findings, it is evident that student loan debt affects the mass, forming a rapidly growing informal interest group made up of mostly millennials. Yet, the pressure from this fast-growing informal interest group is not strong enough to oppose that of other interest groups like Republicans, taxpayers, financial institutions, and other stakeholders involved in student loans, to necessitate an immediate passage of legislation on student loans debt forgiveness.

regulating motherhood through markets: Filipino women’s engagement with microcredit

The Philippines is a global leader in deploying microcredit to address poverty. These programmes are usually directed at women. Research on these programmes focuses on traditional economic indicators such as loan repayment rates but neglects impacts on women’s agency and well-being, or their position in the household and relationships with their partners and children. It is taken for granted that access to microcredit leads to enhanced gender freedoms. In line with the growing body of work in feminist scholarship that critiques the instrumentalist logic of microfinance institutions (MFIs) in relation to women, this research foregrounds stories from interviews with female borrowers in Zamboanga City in Southern Philippines to provide grounded illustrations of how microcredit is reshaping relationships between women and their families, women and poverty and women and the state. Borrowers used loans to meet their family’s needs even at the cost of harassment from creditors, indebtedness, increased workloads and conflict with partners. These narratives challenge the dominant neoliberal discourse of female empowerment through access to credit by exposing how microcredit is part of a complex set of regulations around ‘good motherhood’ and consumption, where women’s moral worth is based on their willingness and ability to lift their families out of poverty.

The moratorium on loan repayments during the Covid-19 Pandemic in Europe: a comparative analysis of loan moratoria in selected European countries

This paper examines the moratorium on loan repayments, which was intended to relieve debtors in a difficult situation during the COVID-19 pandemic. In this study, various aspects of such moratoria are critically discussed and compared from an international perspective. Some debtors were significantly hit hard by the pandemic, whereas others were no. But should the moratoria apply to all of them? The free-rider problem, or even harm to some clients, are among the unintended results of the moratorium. Moreover, the loan repayment moratorium has different effects on the traditional banking sector and on P2P lending platforms. Such differences were not discussed sufficiently before adopting the moratoria. The different effects might have a negative impact on some debtors, on some creditors, or on the market and society in general. Along with using some traditional legal research methods, this paper takes a comparative perspective on loan repayment moratoria in different EU countries among. The conclusions of the paper may help regulators and lawmakers prepare more balanced regulations of loan repayments in the next crisis. Future regulations should reflect the perspectives of both debtors and creditors.