Determinants of Loan Repayment among Village Community Bank Members in Ubungo Municipality, Tanzania

Izack Mbilinyi, Joseph Magali and Michael Mwacha

Journal of Accounting and Finance in Emerging Economies, 2026, vol. 12, issue 1, 33-48

Abstract: Purpose: This study examined the determinants of loan repayment among Village Community Bank (VICOBA) members in Ubungo Municipality, Tanzania. The specific objectives of the study were to assess individual, group, and sociocultural factors affecting loan repayment in VICOBA.Design/Methodology/Approach: The sample size was calculated using Cochran's (1963) formula, where 240 VICOBA members were drawn from 10795 VICOBA members. The collected data were entered into IBM SPSS Statistics (SPSS) version 29. The data analysis involved descriptive statistics to present the frequencies and percentages of participant responses. Ordinary Least Squares regression was employed to assess the influence of individual, group, and socio-cultural factors on loan repayment in VICOBA.Findings: The study revealed that individual, group, and sociocultural factors positively and significantly influenced loan repayment in VICOBA. The study recommends considering individual, group, and socio-cultural factors during loan appraisal to enhance loan repayment in VICOBA. Policy makers should integrate individual, group, and sociocultural factors in VICOBA loan enforcement policies.Implications/Originality/Value: This is the first study to examine the individual, group, and socio-cultural factors in a Tanzanian setting. These factors are essential to the loan repayment performance and sustainability of VICOBA, which rely on social cohesion to promote loan repayment.&

Keywords: Determinants; Loan Repayment; Village Community Banks; Tanzania (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:src:jafeec:v:12:y:2026:i:1:p:33-48

DOI: 10.26710/jafee.v12i1.3675

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