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Empirical Evidence Impact of Interest Rate on Loan Repayment of Microfinancial Institution in Tanzania

Received: 1 September 2016     Published: 6 September 2016
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Abstract

Microfinance nowadays is about drawing the benefits of modern entrepreneurship downward to those with low incomes relatively than endorse alternatives to free enterprise; “…it is a component of the post-Washington Consensus [30]” also not a substitute to the prevailing attitude. We adopted descriptive assessment techniques, the data were collected through interviewing or administering a questionnaire to a sample of 400 respondents, and analyzed by using SPSS software. There was strong negative correlation between multiple loans and positive corelation between business capacity and extent of higher interest rates charged. The study recommended that the business owner should focus on the level of the business capacity with loan proposed to be taken and make the comparisons of the daily business revenues operation and not the capital of the business initiatives.

Published in International Journal of Business and Economics Research (Volume 5, Issue 5)
DOI 10.11648/j.ijber.20160505.12
Page(s) 143-148
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), 2016. Published by Science Publishing Group

Keywords

Microfinance Institutions, Interest Rates, Multiple Loan, Business Capacity

References
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  • APA Style

    Ali Othman Abbas, Zhang Honghui. (2016). Empirical Evidence Impact of Interest Rate on Loan Repayment of Microfinancial Institution in Tanzania. International Journal of Business and Economics Research, 5(5), 143-148. https://doi.org/10.11648/j.ijber.20160505.12

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    ACS Style

    Ali Othman Abbas; Zhang Honghui. Empirical Evidence Impact of Interest Rate on Loan Repayment of Microfinancial Institution in Tanzania. Int. J. Bus. Econ. Res. 2016, 5(5), 143-148. doi: 10.11648/j.ijber.20160505.12

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    AMA Style

    Ali Othman Abbas, Zhang Honghui. Empirical Evidence Impact of Interest Rate on Loan Repayment of Microfinancial Institution in Tanzania. Int J Bus Econ Res. 2016;5(5):143-148. doi: 10.11648/j.ijber.20160505.12

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  • @article{10.11648/j.ijber.20160505.12,
      author = {Ali Othman Abbas and Zhang Honghui},
      title = {Empirical Evidence Impact of Interest Rate on Loan Repayment of Microfinancial Institution in Tanzania},
      journal = {International Journal of Business and Economics Research},
      volume = {5},
      number = {5},
      pages = {143-148},
      doi = {10.11648/j.ijber.20160505.12},
      url = {https://doi.org/10.11648/j.ijber.20160505.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20160505.12},
      abstract = {Microfinance nowadays is about drawing the benefits of modern entrepreneurship downward to those with low incomes relatively than endorse alternatives to free enterprise; “…it is a component of the post-Washington Consensus [30]” also not a substitute to the prevailing attitude. We adopted descriptive assessment techniques, the data were collected through interviewing or administering a questionnaire to a sample of 400 respondents, and analyzed by using SPSS software. There was strong negative correlation between multiple loans and positive corelation between business capacity and extent of higher interest rates charged. The study recommended that the business owner should focus on the level of the business capacity with loan proposed to be taken and make the comparisons of the daily business revenues operation and not the capital of the business initiatives.},
     year = {2016}
    }
    

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    AB  - Microfinance nowadays is about drawing the benefits of modern entrepreneurship downward to those with low incomes relatively than endorse alternatives to free enterprise; “…it is a component of the post-Washington Consensus [30]” also not a substitute to the prevailing attitude. We adopted descriptive assessment techniques, the data were collected through interviewing or administering a questionnaire to a sample of 400 respondents, and analyzed by using SPSS software. There was strong negative correlation between multiple loans and positive corelation between business capacity and extent of higher interest rates charged. The study recommended that the business owner should focus on the level of the business capacity with loan proposed to be taken and make the comparisons of the daily business revenues operation and not the capital of the business initiatives.
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Author Information
  • School of Accounting, Jiangxi Unversity of Finance and Economics, Nanchang, China

  • School of Accounting, Jiangxi Unversity of Finance and Economics, Nanchang, China

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