Interest Rate, Corporate Membership and Loan Repayment by Borrowers from Micro-Financial Institutions in Nakuru County

Wafula Nathan Wamalwa

doi:doi:10.11648/j.jim.20170601.16

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Interest Rate, Corporate Membership and Loan Repayment by Borrowers from Micro-Financial Institutions in Nakuru County

Wafula Nathan Wamalwa

Published in Journal of Investment and Management (Volume 6, Issue 1)

Received: 13 September 2016 Accepted: 20 October 2016 Published: 20 February 2017

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Abstract

The purpose of this study was to determine the relationship between interest rate, corporate membership and loan repayment in MFIs in Nakuru County. The study was guided by two objectives; to investigate the role of interest rate in loan repayment in MFIs in Nakuru County and to analyze the role of corporate membership in loan repayment in MFIs in Nakuru County. The study adopted correlation design and was guided by multiple regression models. The study collected data through structured questionnaires that had adequate research items on every research indicator. Collected data was analyzed using STATA and results were presented using tables. The findings of the study revealed that interest rate is not a determinant of loan repayment in Micro Financial Institutions in Nakuru County and it was concluded that interest rate charged on a loan does not impact on repayment. Similarly, it was evident that corporate membership is not significant determinant of loan Repayment in micro financial institutions in Nakuru County. The study recommends that institutions should establish a close relationship between the lenders and the borrower through monitoring, business advice and regular meetings. The institution can also develop a reward system to those borrowers who repay their loans on time through discounts on subsequent loans and savings. Further studies should be conducted to examine if the following determinants are associated with loan repayment in MFIs period of membership, security given, utmost good faith, consistency of payment during previous loan and social problems.

Published in	Journal of Investment and Management (Volume 6, Issue 1)
DOI	10.11648/j.jim.20170601.16
Page(s)	37-43
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Interest Rate, Corporate Membership, Loan Repayment

References

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APA Style

Wafula Nathan Wamalwa. (2017). Interest Rate, Corporate Membership and Loan Repayment by Borrowers from Micro-Financial Institutions in Nakuru County. Journal of Investment and Management, 6(1), 37-43. https://doi.org/10.11648/j.jim.20170601.16

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ACS Style

Wafula Nathan Wamalwa. Interest Rate, Corporate Membership and Loan Repayment by Borrowers from Micro-Financial Institutions in Nakuru County. J. Invest. Manag. 2017, 6(1), 37-43. doi: 10.11648/j.jim.20170601.16

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AMA Style

Wafula Nathan Wamalwa. Interest Rate, Corporate Membership and Loan Repayment by Borrowers from Micro-Financial Institutions in Nakuru County. J Invest Manag. 2017;6(1):37-43. doi: 10.11648/j.jim.20170601.16

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@article{10.11648/j.jim.20170601.16,
  author = {Wafula Nathan Wamalwa},
  title = {Interest Rate, Corporate Membership and Loan Repayment by Borrowers from Micro-Financial Institutions in Nakuru County},
  journal = {Journal of Investment and Management},
  volume = {6},
  number = {1},
  pages = {37-43},
  doi = {10.11648/j.jim.20170601.16},
  url = {https://doi.org/10.11648/j.jim.20170601.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20170601.16},
  abstract = {The purpose of this study was to determine the relationship between interest rate, corporate membership and loan repayment in MFIs in Nakuru County. The study was guided by two objectives; to investigate the role of interest rate in loan repayment in MFIs in Nakuru County and to analyze the role of corporate membership in loan repayment in MFIs in Nakuru County. The study adopted correlation design and was guided by multiple regression models. The study collected data through structured questionnaires that had adequate research items on every research indicator. Collected data was analyzed using STATA and results were presented using tables. The findings of the study revealed that interest rate is not a determinant of loan repayment in Micro Financial Institutions in Nakuru County and it was concluded that interest rate charged on a loan does not impact on repayment. Similarly, it was evident that corporate membership is not significant determinant of loan Repayment in micro financial institutions in Nakuru County. The study recommends that institutions should establish a close relationship between the lenders and the borrower through monitoring, business advice and regular meetings. The institution can also develop a reward system to those borrowers who repay their loans on time through discounts on subsequent loans and savings. Further studies should be conducted to examine if the following determinants are associated with loan repayment in MFIs period of membership, security given, utmost good faith, consistency of payment during previous loan and social problems.},
 year = {2017}
}

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TY  - JOUR
T1  - Interest Rate, Corporate Membership and Loan Repayment by Borrowers from Micro-Financial Institutions in Nakuru County
AU  - Wafula Nathan Wamalwa
Y1  - 2017/02/20
PY  - 2017
N1  - https://doi.org/10.11648/j.jim.20170601.16
DO  - 10.11648/j.jim.20170601.16
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
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EP  - 43
PB  - Science Publishing Group
SN  - 2328-7721
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AB  - The purpose of this study was to determine the relationship between interest rate, corporate membership and loan repayment in MFIs in Nakuru County. The study was guided by two objectives; to investigate the role of interest rate in loan repayment in MFIs in Nakuru County and to analyze the role of corporate membership in loan repayment in MFIs in Nakuru County. The study adopted correlation design and was guided by multiple regression models. The study collected data through structured questionnaires that had adequate research items on every research indicator. Collected data was analyzed using STATA and results were presented using tables. The findings of the study revealed that interest rate is not a determinant of loan repayment in Micro Financial Institutions in Nakuru County and it was concluded that interest rate charged on a loan does not impact on repayment. Similarly, it was evident that corporate membership is not significant determinant of loan Repayment in micro financial institutions in Nakuru County. The study recommends that institutions should establish a close relationship between the lenders and the borrower through monitoring, business advice and regular meetings. The institution can also develop a reward system to those borrowers who repay their loans on time through discounts on subsequent loans and savings. Further studies should be conducted to examine if the following determinants are associated with loan repayment in MFIs period of membership, security given, utmost good faith, consistency of payment during previous loan and social problems.
VL  - 6
IS  - 1
ER  -

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Author Information

Wafula Nathan Wamalwa

School of Business, Kenyatta University, Nairobi, Kenya

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Plain Text BibTeX RIS

APA Style

Wafula Nathan Wamalwa. (2017). Interest Rate, Corporate Membership and Loan Repayment by Borrowers from Micro-Financial Institutions in Nakuru County. Journal of Investment and Management, 6(1), 37-43. https://doi.org/10.11648/j.jim.20170601.16

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ACS Style

Wafula Nathan Wamalwa. Interest Rate, Corporate Membership and Loan Repayment by Borrowers from Micro-Financial Institutions in Nakuru County. J. Invest. Manag. 2017, 6(1), 37-43. doi: 10.11648/j.jim.20170601.16

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AMA Style

Wafula Nathan Wamalwa. Interest Rate, Corporate Membership and Loan Repayment by Borrowers from Micro-Financial Institutions in Nakuru County. J Invest Manag. 2017;6(1):37-43. doi: 10.11648/j.jim.20170601.16

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@article{10.11648/j.jim.20170601.16,
  author = {Wafula Nathan Wamalwa},
  title = {Interest Rate, Corporate Membership and Loan Repayment by Borrowers from Micro-Financial Institutions in Nakuru County},
  journal = {Journal of Investment and Management},
  volume = {6},
  number = {1},
  pages = {37-43},
  doi = {10.11648/j.jim.20170601.16},
  url = {https://doi.org/10.11648/j.jim.20170601.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20170601.16},
  abstract = {The purpose of this study was to determine the relationship between interest rate, corporate membership and loan repayment in MFIs in Nakuru County. The study was guided by two objectives; to investigate the role of interest rate in loan repayment in MFIs in Nakuru County and to analyze the role of corporate membership in loan repayment in MFIs in Nakuru County. The study adopted correlation design and was guided by multiple regression models. The study collected data through structured questionnaires that had adequate research items on every research indicator. Collected data was analyzed using STATA and results were presented using tables. The findings of the study revealed that interest rate is not a determinant of loan repayment in Micro Financial Institutions in Nakuru County and it was concluded that interest rate charged on a loan does not impact on repayment. Similarly, it was evident that corporate membership is not significant determinant of loan Repayment in micro financial institutions in Nakuru County. The study recommends that institutions should establish a close relationship between the lenders and the borrower through monitoring, business advice and regular meetings. The institution can also develop a reward system to those borrowers who repay their loans on time through discounts on subsequent loans and savings. Further studies should be conducted to examine if the following determinants are associated with loan repayment in MFIs period of membership, security given, utmost good faith, consistency of payment during previous loan and social problems.},
 year = {2017}
}

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TY  - JOUR
T1  - Interest Rate, Corporate Membership and Loan Repayment by Borrowers from Micro-Financial Institutions in Nakuru County
AU  - Wafula Nathan Wamalwa
Y1  - 2017/02/20
PY  - 2017
N1  - https://doi.org/10.11648/j.jim.20170601.16
DO  - 10.11648/j.jim.20170601.16
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 37
EP  - 43
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20170601.16
AB  - The purpose of this study was to determine the relationship between interest rate, corporate membership and loan repayment in MFIs in Nakuru County. The study was guided by two objectives; to investigate the role of interest rate in loan repayment in MFIs in Nakuru County and to analyze the role of corporate membership in loan repayment in MFIs in Nakuru County. The study adopted correlation design and was guided by multiple regression models. The study collected data through structured questionnaires that had adequate research items on every research indicator. Collected data was analyzed using STATA and results were presented using tables. The findings of the study revealed that interest rate is not a determinant of loan repayment in Micro Financial Institutions in Nakuru County and it was concluded that interest rate charged on a loan does not impact on repayment. Similarly, it was evident that corporate membership is not significant determinant of loan Repayment in micro financial institutions in Nakuru County. The study recommends that institutions should establish a close relationship between the lenders and the borrower through monitoring, business advice and regular meetings. The institution can also develop a reward system to those borrowers who repay their loans on time through discounts on subsequent loans and savings. Further studies should be conducted to examine if the following determinants are associated with loan repayment in MFIs period of membership, security given, utmost good faith, consistency of payment during previous loan and social problems.
VL  - 6
IS  - 1
ER  -

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