Microfinance trust factor: A village fund case in Thailand

  • James Lancaster STIU


This paper presents the findings related to trust factor impact of Village and Urban Community Fund (VCF) program on the members of Ton-ked rural community in Prachuabkirikan province of Thailand. The study was not based on a predetermined set of criteria, but was based on what the members have experienced as a result of the program participation. Members of the village fund were invited to a gathering to participate in this study and nine agreed statements describing the impact of the program were derived. The result shows that Investment Return, Household Spending, Knowledge, Payback In-confidence, Bias Perception, Fear of not getting a second round loan, Trust, Unity, and Sacrifice were the impact perceived. Since different communities have different nature and characteristics, uniqueness of the operation in each community should be allowed in the assessment. Exploratory Factor Analysis was used to determine the impacts and the trust factor and the non-trust factor are derived. This paper raises the point that microfinance impact assessment criteria relevant for understanding the trust impact should be explored. Trust factor is a significant factor in the assessment of a microfinance program such as VCF as it necessary for the understanding of cooperation and self-governance of the people required for sustainable microfinance institutions.
Jun 22, 2017
How to Cite
LANCASTER, James. Microfinance trust factor: A village fund case in Thailand. Journal submission manual - ASEAN Journal of Management & Innovation, [S.l.], v. 4, n. 1, p. 123-138, june 2017. ISSN 2351-yyyz. Available at: <http://journal.stamford.edu/index.php/ajmi/article/view/681>. Date accessed: 24 oct. 2017.