Factors Influencing Loan Repayment of Rural Men in Ethiopia: The Case of Yaballo District

Abstract

The study was conducted with the aim of identifying factors that influence loan repayment of rural men in Yaballo district using primary data that were collected through structured questionnaire from 140 sample men borrowers of Dadim and  Cholkasa kebeles.  Different sources of credit which the men used and repayment of the men to each source were also investigated. The estimation results of the logit model showed that age of the borrower, participation on off-farm activities, land size of borrowed, training, loan size loan diversion, and repayment period were found as the significant factors that enhance the loan repayment. Therefore, financial institution development practitioners should take those variables into consideration while giving credit to men borrowers.

Keywords: Loan repayment, Credit, Logit model, Defaulter, non-defaulter

DOI: 10.7176/EJBM/12-31-03

Publication date: November 30^th 2020