Women and Repayment in Microfinance

38 Pages Posted: 11 Jan 2011

See all articles by Roy Mersland

Roy Mersland

University of Agder

Bert D'Espallier

Hogeschool-Universiteit Brussel (HUBrussel); Catholic University of Louvain (UCL) - Lessius University College

Isabelle Guérin

Universities of Marseille - University of Provence - Aix-Marseille I

Date Written: November 18, 2010

Abstract

This paper analyzes gender-differences with respect to microfinance repayment-rates using a large global dataset covering 350 Microfinance Institutions (MFIs) in 70 countries. The results indicate that more women clients is associated with lower portfolio-at-risk, lower write-offs, and lower credit-loss provisions, ceteris paribus. These findings confirm common believes that women in general are a better credit-risk for MFIs. Interaction effects reveal that the effect is stronger for NGOs, individual-based lenders, ‘finance plus’-providers and regulated MFIs. This indicates that two types of MFIs benefit more than others from focussing on women: First, those MFIs that develop hands-on, women-friendly procedures tailored to individual women’s need, and Second, those MFIs that apply coercive enforcement methods to which women are more responsive.

Keywords: Microfinance, Gender, Repayment, Portfolio-at risk, Write-offs, Provisions

JEL Classification: O10, O12

Suggested Citation

Mersland, Roy and D'Espallier, Bert and Guérin, Isabelle, Women and Repayment in Microfinance (November 18, 2010). World Development, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1711396

Roy Mersland (Contact Author)

University of Agder ( email )

Serviceboks 422
N-4604 Kristiansand, VEST AGDER 4604
Norway

HOME PAGE: http://www.uia.no/microfinance

Bert D'Espallier

Hogeschool-Universiteit Brussel (HUBrussel) ( email )

Stormstraat 2
Brussels, 1000
Belgium

Catholic University of Louvain (UCL) - Lessius University College ( email )

Department of Business Studies
Korte Nieuwstraat 33
Antwerp, 2000
Belgium

Isabelle Guérin

Universities of Marseille - University of Provence - Aix-Marseille I ( email )

3, avenue Robert Schuman
Aix-en-Provence, 13100
France

Register to save articles to
your library

Register

Paper statistics

Downloads
337
rank
84,879
Abstract Views
2,253
PlumX Metrics