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To analyze how Micro Finance Institutions are managing their nonrepayment risk by using GroupBased Lending approach, the deductive approach has been used in this study and the case study method is deployed. Khushhali Bank Limited, Pakistan has been taken for the subject Micro Finance Institutions. The four interrelated theories have been taken into consideration, namely Portfolio, PrincipalAgent, Contract and Transaction Cost Theories, to have a detailed literature review about the threat of nonrepayment risk through GroupBased Lending. The study chalked out a result that by combining diversified members in a group under GroupBased Lending approach, Micro Finance Institutions can able to minimize their nonrepayment risk.
⚠️ WARNING (California Proposition 65):
This product may contain chemicals known to the State of California to cause cancer,
birth defects, or other reproductive harm.
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