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American International Journal of Contemporary Research Vol. 4, No. 12; December 2014 36 Causes and Control of Loan Default/Delinquency in microfinance Institutions in Ghana Alex Addae-Korankye Central University College BOX DS 2310, Dansoman Accra, Ghana Abstract The study analysed the Causes and Control of loan delinquency/default in microfinance institutions in Ghana. Random sampling technique was used to select twenty-five microfinance institutions and two hundred and fifty clients for the study. Questionnaire and interview guide were used to collect data for the study. The study found the Causes of loan default to include; high interest rate, inadequate loan sizes, poor appraisal, lack of monitoring, and improper client selection.
with 3 years of experience. Microfinance Institution may be defined as any financial institution which offers not only small loans to microenterprises, SMEs, groups and individuals but also provides other financial services like savings, insurance, and investment advice including even …
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