This study employs a cross sectional design with stratified random sampling method to examine how common household factors affect repayment performance of Amanah Ikhtiar Malaysia (AIM)’s hardcore poor microcredit program clients in Peninsular Malaysia. This study designed and tested a structural equation model to investigate how uses of loan, household income, number of gainfully employed members, number of sources of income and total savings affect repayment performance. Findings of this study showed a significant model fit and negative linear relationship between repayment problem with uses of loan in income generating activities, household income, number of gainfully employed members, and number of sources of income. AIM should therefore focus on designing and providing appropriate training and development programs to enable the hardcore poor households’ ability to use credit in income generating activities, grasp employment generating opportunities as well as find and invest in new income generating activities.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.