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| Kuhn, M.E.; Darroch, Mark A.G.; Ortmann, Gerald F.; Graham, Douglas H.. |
| Three development finance institutions (DFIs) which operate in KwaZulu-Natal (KZN) province were assessed in 1996/97 to see how they could improve financial viability and outreach to emerging farmers, agribusiness and micro-entrepreneurs. Improved service quality and emphasis on mobilising savings would help clients and enable the DFIs to diversify their portfolios. Better access to branches and lower loan approval times (improved screening and administrative procedures) could also lower client transaction costs. Charging a suitable interest rate spread is necessary but not sufficient for lenders to achieve subsidy independence. Reducing arrears through stricter loan contract enforcement (borrower accountability for loan repayment, lower collateral... |
| Tipo: Journal Article |
Palavras-chave: Agricultural Finance. |
| Ano: 2000 |
URL: http://purl.umn.edu/54199 |
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| Kuhn, M.E.; Darroch, Mark A.G.; Ortmann, Gerald F.. |
| Collateral is an important incentive device used by lenders to encourage loan repayment. However, collateral must have secure and transferable title, it must be marketable, have low lender liquidation costs and lenders must be able to attach the collateral. Study results for rural and micro-enterprise finance institutions in KwaZulu-Natal showed that assets such as vehicles and equipment were not effective as collateral due to high costs in attaching the asset. Cessions on crops were often constrained by flaws in collection mechanisms. Secure and transferable property rights were important preconditions for land to have value as collateral. Collateral substitutes such as joint liability mechanisms were less effective when lending to large farmer groups... |
| Tipo: Journal Article |
Palavras-chave: Agricultural Finance. |
| Ano: 1997 |
URL: http://purl.umn.edu/54724 |
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| Kuhn, M.E.; Darroch, Mark A.G.; Ortmann, Gerald F.. |
| Bivariate probit analysis was used to assess the efficacy of a South African microlender’s loan screening process. This micro-lender grants short-term cash loans to individuals who are employed and earning a fixed salary. Loan applicants with more stable incomes, who are contactable via telephone or post, who are employed in less risky business sectors, who have more disposable income relative to debt, and who have had a good credit history with other lenders, are more likely to be accepted. None of the factors with a significant effect on the loan screening decision could explain subsequent loan default by accepted applicants. The microlender may have screened out very risky clients and accepted a riskier, profitable pool of loan applicants with risk... |
| Tipo: Journal Article |
Palavras-chave: Financial Economics. |
| Ano: 2000 |
URL: http://purl.umn.edu/54229 |
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