The Contribution of Behavioral Finance in The Decision of the Microcredit Granting: Empirical Application to the Tunisian AMC Case

The objective of this paper is to study the validity of the hypothesis of the rationality of the decisions of granting micro-credits to the micro-borrowers in MFIs through a behavioral approach as long as the latter attempts to provide new behavioral assumptions of microfinance by introducing behavioral and psychological biases of the micro-borrowers. We tried to explore the main theoretical studies dealing with the hypothesis of rationality of the micro-borrowers within the MFIs and the factors that affect it. At the empirical level, and using a survey, we are interested in studying the psychological variables which affect the micro-borrowers’ rationality of the Tunisian AMCs. This study is based on an analysis of a survey, as well as a logistic regression of an econometric model containing the behavioral and psychological variables. In fact, these techniques enabled us to support the limited decision rationality of granting micro-credits to the micro-borrowers within the AMCs.