Determinants of Repayment in Microcredit: Evidence from Program in Guangzhou

摘要

Microfinance institution (MFI) is an social and sustainable institution. The repayment rate of microcredit has an important role for the MFI, and in order to ensure the sustainability of MFI, reduce microcredit administration costs, lower interest rates, achieve its social goals of eradicating poverty for more poor people, MFI must improve the repayment rate. This paper studies the determinants of repayment in microcredit on the base of the program in Guangzhou, the result shows the education and counter guarantee methods are the important factors to the repayment in microcredit in the China, which can be used to provide practical ideas and methods for the MFI.