Analysis of the Failure of Credit Contracts in Microfinance Institutions in Kara, Togo

The primary goal of microfinance institutions is to lift vulnerable populations of young people and women out of poverty that the traditional banking system excludes from its clientele. The objective of this study is to analyze the failure of credit contracts in microfinance institutions in Kara. Methodologically, it is of a mixed nature: qualitative and quantitative. Reasoned choice and snowballing were used as a sampling technique to record essential information from 167 respondents for data processing using SPSS, Excel and Word software. The theory of action logics of M. Crozier and E. Friedberg made it possible to better explain the problem of our article. The results reveal that misappropriation of the purpose of credit, financial cavalry and lending of obtained credit are the main factors in the insolvency of debtor clients, hence the failure of credit contracts in city microfinance from Kara. Keywords: Microfinance, Credit Contract, Failure, Client, Kara