Strong rate of Loan Repayment

Supplementing group loaning, investors find women (who control 90% of the world’s micro-loans) more dedicated to repayment schedules than men. In 1995, Shahidur Khandker et al. found that 15% of male borrowers missed payments before the final due date, whereas only 1% of women faced such trouble (Armendáriz and Morduch, 143). Armendáriz and Morduch found women more likely to pay because they see fewer options than their husbands and are; “more vulnerable to the shame of noncompliance” and thus banks, “simply knowing that women on average are better clients” have redirected loans towards female borrowers (143). Targeted not only for their productive investments, women have shown more disciplined repayments and given banks a reason to grant them credit.