FACTORS INFLUENCING LOAN REPAYMENT IN MFIS OF NEPAL DURING COVID-19 PANDEMIC: A CASE STUDY OF PARBAT DISTRICT
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Abstract
Microfinance institutions offer medium amount of loans mostly to business people who cannot afford collaterals to get loan from the main stream financial institutions. Despite the recent growth in the microfinance sector, the sector is faced with challenges of loan repayment defaults by clients. Individuals groups have tried using group's equality for collaterals which is expected to ensure the revolving of money for the benefits of other
individual's members of the group.
Description
This study was carried out to analyze the factors influencing loan repayment in MFIs in the context of Nepal during Covid-19 pandemic. This was after the observation that despite various mechanisms being put in place, the level of loan defaults in MFIs was still high thus threatening growth, existence and even their survival. The main goal of every microfinance institutions is to operate profitability in order to maintain its stability and
improve growth and sustainability