Demand for Microfinance Institution Loan by Women Entrepreneurs in selected Markets in Ghana

Abstract

This study explored factors driving the demand for Micro-Finance Institution (MFI) loan by women entrepreneurs in selected markets in Ghana, using robust regression model. Structured questionnaire was used to collect data from 300 purposively selected women. The average loan demanded by the women from MFIs was GH¢4139.50, representing 92 percent of total amount needed. Proximity to MFIs, flexibility in loan repayment and time-lag are the main factors driving the demand for MFI loan by market women in the study area. MFIs should provide timely, tailor-made loans with flexible repayment plans to the doors of their customers to increase loan demand.