[ Econometric Analysis of the Failure in Group Lending]

Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. ABSTRACT: The joint liability presents a guarantee in group lending to Microfinance Institution. However this mechanism of lending is often accompanied by a strategic defect which generates failing micro-borrowers. The purpose of this study is to analyze in an econometric way this failure by using techniques of data analysis to study the validity and the efficiency of the group lending. To this end we shall use data from a foundation specialized in Microfinance, particularly in microcredit, it is a question in this study of the ARDI Foundation (Rabat – Morocco) for Microcredit. The handled database is constituted on one hand, by data collected from a field survey which targets the bad borrowers with regard to the number of days of delay of repayment, and on the other hand, data stemming from the information system of the foundation recapitulating the good borrowers. In this study we tried to establish characteristics of the borrowers, allowing to differentiate the vouchers of bad. The obtained results assert that the fundamental causes of the failure are, the absence of the mutual supervision and the mutual pressure, principles of the solidarity on which is based the microcredit. With the aim of minimizing the default risk w