Title: Loan repayment and female borrowers in African microfinance institutions

Authors: Imen Khanchel; Dorsaf Bentaleb; Cyrine Khiari

Addresses: University of Manouba, ESC Tunis, Campus Universitaire Manouba, 2010, Manouba, Tunisia; Université de Tunis, ESSECT, LR11ES02 – LARIME, 1089, Montfleury, Tunisia ' University of Tunis, ISG Tunis, LARIME, LR11ES02, Tunisia ' University of Manouba, ESC Tunis, Campus Universitaire Manouba, 2010, Manouba, Tunisia; Université de Tunis, ESSECT, LR11ES02 – LARIME, 1089, Montfleury, Tunisia

Abstract: The purpose of this study is to investigate whether female borrowers exhibit higher loan repayment in African microfinance institutions (MFIs). The empirical study uses unbalanced panel data of 120 MFIs from 2006 to 2019. The results reveal that female borrowers have a positive impact on repayment performance. The presence of women reduces the portfolio at risk and the probability of default payment. We conclude that targeting female clients, who are generally risk-averse, improves the repayment performance of MFIs. We conclude that microfinance can lead to the feminisation of debt, as women are reliable in repayment.

Keywords: microfinance institutions; MFIs; repayment performance; women borrowers; Africa.

DOI: 10.1504/AAJFA.2025.145967

Afro-Asian Journal of Finance and Accounting, 2025 Vol.15 No.3, pp.302 - 324

Received: 15 Mar 2021
Received in revised form: 11 Jun 2022
Accepted: 23 Jun 2022
Published online: 01 May 2025 *

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