Socio-Economic, Behavioral, and Environmental Determinants Influencing the Borrowing and Repayment Patterns of Microfinance Clients in Nueva Ecija

This study investigated the socio-economic, behavioral and environmental determinants influencing the borrowing and repayment patterns of microfinance clients in Nueva Ecija. The study employed descriptive-correlational predictive research design. Data were collected from 185 active microfinance clients through a validated survey questionnaire. Data were analyzed using Descriptive statistics, Pearson Product-Moment Correlation and Multiple Linear Regression. The results showed that respondents exhibited socio-economic, environmental and behavioral determinants strongly. Likewise, the respondents had positive borrowing and repayment habits which were responsible borrowing, prudent utilization of the loan and commitment to meeting the obligations of the loans. The analysis also revealed that age, sex, civil status, educational attainment, occupation, monthly household income, years as a microfinance client and loan purpose were significantly correlated with the key determinants that influence borrowing and repayment behavior, while the number of dependents was significantly correlated only with the behavioral and environmental determinants. In addition, environmental determinants were significant predictors of the borrowing and repayment behaviors of the respondents, underscoring the importance of conducive economic conditions, access to financial services, market opportunities, and community support in fostering responsible loan repayment. The study concluded that better repayment performance and long-term sustainability of microfinance programs in Nueva Ecija can be achieved through improving the financial capability of the borrowers with better institutional support and a more conducive external environment.

Borrowing Behavior; Environmental Determinants; Financial Literacy; Loan Repayment; Socio-economic Determinants;

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