|Title:||MAJOR DETERMINANT OF CREDIT DEFAULT RISK ON MICROAND SMALL ENTERPRISES BORROWERS|
|Keywords:||DETERMINANT OF CREDIT DEFAULT RISK ON MICROAND SMALL ENTERPRISES BORROWERS|
|Abstract:||Access to financing is an important aspect in the business operation of micro and small enterprises. However, repayment problem is an obstacle to the financial institutions including microfinance institutions (MFIs) that offer microfinance based on specific lending methodologies to provide loan to micro entrepreneurs.This study was conducted with the objective of examining and identifying the factors that influence the loan repayment performance of the loan beneficiaries of ADCSI. In order to achieve this objective, descriptive and explanatory esearch design were selected. both Qualitalive and quantitative approach were used. And also both primary and secondary data to callect data by carring a cross sectional survey design was collected. primarily data were collected 88 out of 100 randomly selected clients (44 defaulters and 44 non-defaulters) by using questionnaire. Moreover, secondary data were obtained from the record of ADCSI and pabulished journal. And aslo stratified sampling technique were used. For the data analysis, descriptive statistics including mean, standard deviation, frequency and percentages were used to describe the socio-economic characteristics of the borrowers. Besides, t-test was employed to compare the defaulters and non-defaulters group. A binary logit model was used to analyze the socio-economic factors that influence loan repayment performance.13 explanatory variables were included in the regression.out of which nine variable were found to have statistically significant effect on the loan repayment performance.the result of shows that having other source of income,education, credit experience, high sales volume, business experience, credit supervision and being female borrower are important and significant factors that enhance the credit repayment performance, while high dependency ratio and large loan size are undermining factors of the loan repayment performance of borrowers. Therefore, consideration of these factors is vital as it provides information that would enable us undertake effective measures with the aim of improving loan repayment performance in the study area. It would also enable lenders and plicy makers as to where and how to exert their effert in order to minimize loan repayment problem|
|Appears in Collections:||Accounting and Finance|
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