Factors Contributing to Repayment Behavior of Micro Loans. Speedy Payday Loans as Alternative

 bank's customersIn Iran, Agricultural Bank is one of the institutions who have played an influential role in allocating loans in rural communities of Iran. In other words, in terms of number and amount of loans, micro loans account for 95 percent of total loans and 50 percent of the loans that were paid in Agricultural Bank of Iran in 2013. As a result, applicants for micro loans constitute a significant portion of the bank’s customers.

There are two main sources for financing these lending to small-scale farmers: increase in bank monetary resources and recovery of overdue awarded credits. Meanwhile, the specific approach of Agricultural Bank as a professional institution has resulted in less customer savings in comparison with other banks. Consequently, collection of overdue payments is the most important resource to finance future applications for loans. Unfortunately, Agricultural bank challenges a high rate of over due repayment and the percentage of default on loans is calculated around 20 percent. These non-payments have initiated major problems such as increased credit risk, waste of resources and time, increase in bank costs, and a blockage in the portion of the Bank’s lending resources and disruption in the plans of the Bank. Thus, the Agricultural Bank as a provider of financial services to farmers is entirely dependent on repayment of loans to provide necessary credit. However, Due to the high incidence of default in Agricultural Bank of Meshkinshahr, this bank faces serious problems in its potential in allocating loans to farmers in rural areas. Accordingly, the main objective of this study was to investigate the factors affecting the repayment behavior of loans by farmers in Agricultural bank of Meshkinshahr.

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The Impact of State Taxes on Self-Insurance: Closing remarks

5. Closing remarks
In summary, this paper finds self-insurance of property-casualty risks increases in state taxes. Tests are conducted assessing the relation between a state’s property-casualty insured losses and its tax levy on the insurance industry. As expected, a negative relation holds for nonautomobile coverage and automobile physical damage coverage. Similar relations are detected for workers’ compensation benefit payments. These findings are consistent with consumers opting to self-insure rather than bear the incidence of higher insurer taxes. Continue reading

The Impact of State Taxes on Self-Insurance: NOPRIVATE

North Dakota and Wyoming are excluded from the analysis because they prohibit selfinsurance, and Texas is excluded because 1993 was the first year that it permitted self-insurance. For the 47 remaining states, the percentage of workers’ compensation not covered through selfinsurance ranges from 54 percent to 92 percent with a mean (median) of 77 (79) percent and a standard deviation of 9 percent. A categorical variable (NOPRIVATE) is added to the explanatory variables to identify the four states (Nevada, Ohio, Washington, and West Virginia) that restrict coverage to self-insurance or state funds. Continue reading