The Determinants Of Loan Default Among Urban Poor Business Women: Evidence From A Micro Finance Institution In Ghana

ABSTRACT Growth of microcredit is seen as an important way to expand financial services to the poor and unbanked, and to help reduce poverty. However, high default rate remains a major challenge for micro-lenders. Understanding the causes of default among the poor is important for devising effective strategies to deal with this problem. This study sought to identify the determinants of loan default among urban poor women in the Greater Accra Region of Ghana. The study quantifies the relative importance of borrower characteristics, macroeconomic factors (exchange rate, inflation), financial li…