Factors Affecting Loan Repayment Performances; The cases of DBE

The central objectives of this work is to identify and analyze the major factors of loan repayment performances in Development Bank from four different viewpoints, from borrower side, from bank side, from business/project and factors related to external environments. Primary and secondary data were utilized to accomplish above stated objectives. The primary data was collected from selected borrowers through questionnaires and pre-tested structured interview with staffs and bank managers. Stratified random sampling was employed to define and select the population of the study where borrowers were stratified based on their loan status. Descriptive statistics and econometric analyses particularly logistic regression (binary logit) were employed to present the results and findings of the research. Factors affecting loan repayment performances are classified under four broad categories; factors related to characteristics of borrowers, factors contributing from lender institution, factors related to business/project itself and the other external factors were analyzed and interpreted using descriptive statistics and logistic regression.