Journal Name:
- Eurasian Journal of Business and Economics
Author Name | University of Author |
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Abstract (2. Language):
Micro finance involves the provision of micro-credit, savings, and other services to
the poor that are excluded by the commercial banks for collateral and other
reasons. Microfinance is relatively new to Ethiopia and came to existence during
1994-95. Out of which Sidama Micro Finance Institution (SMFI) is one among
31Micro Finance Institutions (MFIs) to serve needy people in Ethiopia. Based on this
researchers’ intended to study major socio- economic factors and loan related
factors that determines loan repayment performance of borrowers in SMFI. In fact,
the identifying and analyzing such determining factors of loan repayment rate is
vital in the achievement of profitability and sustainability of MFIs. In this
connection, researchers’ collected data from primary and secondary resources and
analyzed by using Binary logistic model is used. Through the study 14 determinants’
are selected for evaluation, out of which 9 variables are significant and remaining
insignificant are found. Based on the analysis, researchers are recommended that
proper training should be provided, reasonable amount of loan which should be
useful to their business. Further, more age people and well business experience
people can able to repay their loan amount` timely to micro finance institution.
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