Credit linkage effects on borrowing cost and repayment performance among marginal farming households in the island of Leyte [Philippines]
1991
Corcilles, S.D.
Results revealed that characteristics and practices of borrowers on each credit linkage were almost similar. Borrowing cost of unlinked credit transactions was much less than both type of linked credit due to tremendous interest cost of the latter which aimed to offset risk and uncertainty. There was insignificant effect of credit linkage on borrowing cost and repayment because of insufficient evidence to substantiate the effect. Low efficiency of the models in explaining the variation of the dependent variables, despite of its significant linear relationships, had been attributed to the inadequate and widely dispersed distribution of data and exclusion of noneconomic factors such as social, cultural, and political aspects on the credit system and linkage.
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