Abstract

GOLMAN, Matías  and  BEKERMAN, Marta. What Drives Debt Defaults in Microfinance? The Case of the Asociación Civil Avanzar. Prob. Des [online]. 2018, vol.49, n.195, pp.127-151. ISSN 0301-7036.  https://doi.org/10.22201/iiec.20078951e.2018.195.62527.

This paper sets out to elucidate the variables driving higher or lower rates of microfinance borrowers defaulting on paying back their loans in a case study of Asociación Civil Avanzar. We analyze the database held by this Argentinean civil society organization, examining the most salient data on borrowers, including personal, household, and loan information, to explain their behavior with respect to paying their installments. Interesting conclusions emerged that could help make progress down the path toward solving reporting problems when institutions similar to those in this study are deciding whether to grant a loan or not.

Keywords : Microfinance; default; borrowers; microcredit; financial services; econometric analysis.

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