Causes and Control of Loan Default/Delinquency in ...

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.

Micro, Small and Medium Enterprises (MSMEs). According to Balogun and Alimi (1990), loan default can be defined as the inability of a borrower to fulfil his or her loan obligation when due. High default rates in MSMEs lending should be of major concern to policy makers in developing countries, because of its unintended negative

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  Medium, Enterprise, Small, Small and medium enterprises

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