Factors Affecting Loan Repayment Performance of Microfinance Institution Borrowers: The Case of Omo Microfinance at Wondo Genet Woreda, Ethiopia

Akalewold Fedilu Mohammed and Mesfin Hirpato Wobe
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Akalewold Fedilu Mohammed: School of Governance and Development Studies, Hawassa University, Hawassa, Ethiopia
Mesfin Hirpato Wobe: Wondo Genet Woreda Public Service and Human Resource Development Office, Wondo Genet, Ethiopia

International Journal of Applied Behavioral Economics (IJABE), 2019, vol. 8, issue 2, 27-43

Abstract: This study investigated the factors that affect the loan repayment performance of Omo Microfinance Institution borrowers at Wondo Genet Woreda, Ethiopia. Both primary and secondary data were used in the study. The required data were collected from 225 borrowers of Omo Microfinance. Respondents were selected by a stratified random sampling technique. Both qualitative and quantitative methods of analysis were used. The findings of the study revealed that 44.9% of borrowers in the study area did not repay the amount of money they borrowed as per credit schedules. The major factors that affect the loan repayment performance of borrowers were their sex, educational level, family size, borrowing experience, timelines of loan, repayment period and advisory visit.

Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:igg:jabe00:v:8:y:2019:i:2:p:27-43

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