Performance of Loan Repayment Determinants in Ethiopian Micro Finance - An Analysis

Eurasian Journal of Business and Economics

卷:7

Tolosa NEGESE¹  Shaik Abdul Majeeb PASHA¹ 

[1] Arba Minch University;

关键词: Micro Finance;    Loan Repayment;    Performance of Borrowers;    Institution.;   

DOI  :  

来源: DOAJ

【 摘 要 】

Micro finance involves the provision of micro-credit, savings, and other services tothe poor that are excluded by the commercial banks for collateral and otherreasons. Microfinance is relatively new to Ethiopia and came to existence during1994-95. Out of which Sidama Micro Finance Institution (SMFI) is one among31Micro Finance Institutions (MFIs) to serve needy people in Ethiopia. Based on thisresearchers’ intended to study major socio- economic factors and loan relatedfactors that determines loan repayment performance of borrowers in SMFI. In fact,the identifying and analyzing such determining factors of loan repayment rate isvital in the achievement of profitability and sustainability of MFIs. In thisconnection, researchers’ collected data from primary and secondary resources andanalyzed by using Binary logistic model is used. Through the study 14 determinants’are selected for evaluation, out of which 9 variables are significant and remaininginsignificant are found. Based on the analysis, researchers are recommended thatproper training should be provided, reasonable amount of loan which should beuseful to their business. Further, more age people and well business experiencepeople can able to repay their loan amount` timely to micro finance institution.

【 授权许可】

Unknown