Another way of assessing the extent to which borrower, business and loan characteristics affect repayment is to present Odds Ratios (OR) as shown in Figure 1.[3] On this basis, borrowers having more than three dependents and operating in the service sector obtained larger loans with longer maturities, used the proceeds to finance fixed investments, lacked non-business income, and were at greater risk of default. These findings confirm the bivariate results.
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