Exploring behavioral determinants of loan repayment among rural women SHG members in Tamil Nadu: A theory of planned behavior approach

Abstract

This research examines the behavioral drivers behind loan repayment practices among rural women involved in Self-Help Groups (SHGs) by applying the Theory of Planned Behavior (TPB). The study focuses on how individual attitudes, social pressures, and perceived control impact the intention to repay loans and how these intentions translate into actual repayment actions. Primary data were gathered from 300 SHG women borrowers and analyzed using Smart PLS through Structural Equation Modeling (SEM). Results indicate that all TPB elements meaningfully affect repayment intentions, which in turn mediate their influence on actual repayment. The research emphasizes the importance of psychological and social elements in understanding financial behavior in microfinance, providing actionable insights for financial institutions and policymakers aiming to enhance repayment performance among rural women.