2019 年 10 巻 1 号 p. 122-128
Tanzania is a low-income country, with a high proportion of its population below the poverty line. Like most developing countries, access to financial services from formal microfinance institutions (MFIs) is limited. Recently, however, access to financial services in both rural and urban areas has increased, with group lending programs playing a significant role in this transformation. To assess the repayment performance of group lending programs, this study highlights the case of BRAC Tanzania, a leading non-governmental organization. Primary data were collected through questionnaires administered to 177 members of ten randomly selected groups and interviews with BRAC Tanzania officials, whereas secondary data were obtained from BRAC Tanzania reports and other documents. Repayment performance is measured by the proportion of the portfolio that is overdue (arrears), the proportion of the portfolio that is overdue by 30 days or more (portfolio at risk), and the percentage of the loan portfolio that is written off. The results indicate remarkably low levels of arrears, portfolio at risk, and write-offs, implying high repayment performance. This success reflects good institutional design, such as frequent client visits, frequent repayment schedules, and a strict loan approval process. In addition, from the member side, this success is owing to several factors such as sanctions, contributions by other group members, and the protection of future access to credit.