Process Views of Peer Mechanism in Joint Group Lending through the Theoretical Lens of Agency Theory: A Systematic Review of Literature

Malhotra, Nishi; Baag, Pankaj Kumar

doi:10.5958/0976-173x.2021.00011.7

Cited by 1 publication

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“…Due to these circumstances, loan payback is reduced. Joint liability through a Self Help Group is the most effective way to address the issues of adverse selection and moral hazard (Malhotra, Baag, 2021). Self-help groups are those groups which are generally formed by 8 to 20 members who belong to the same homogeneous background and gather a saving pool and once their pool of saving has reached an adequate level then the group will start lending to the group members (Brody et.…”

Section: Literature Reviewmentioning

confidence: 99%

A Study on Loan Delinquency of the Self Help Group-Bank Linkage Programme in Rural Rajasthan

Bhatnagar,

Yadav

2023

Folia Oeconomica Stetinensia

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Research background Providing the microfinance to rural women is the prime concern of the government at central and state level in which the best microfinance programme is the Self Help Group Bank Linkage Programme. However, the Delinquency rate of the SHGBLP loan is on the higher side. As, borrowers do not make their loan repayments on time. Purpose The purpose of this research is to examine which types of self-help groups make timely repayments of an old loan. Also, to find out the different aspects of the loan delinquency rate which affect them and to find out the impact of self-help group maturity on loan repayment. Research methodology For this a total of 300 members were selected from the Udaipur and Banswara district of Rajasthan. Further, Tobit Regression has been applied to find out the factors which affect the loan delinquency percentages in the Self Help Group Bank Linkage Programme. Results The results highlighted that the maturity of the SHG group affects their repayment performance as old SHGs are functioning well in terms of repayment. The reason for the high delinquency rate is that the members had no surplus Income to repay back because of the failure of Business, natural calamities and medical issues. The members who are repaying the loan back on time are giving from their agriculture and enterprise profits. Novelty A lot of research has been carried out on the Impact of SHGBLP on many other factors but there is no research that has been done to find out why the programme has high loan delinquencies after being the best together with the impactful microfinance programme.

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Section: Literature Reviewmentioning

confidence: 99%