Determinants of Loan Repayment in Commercial Bank of Ethiopia: Evidence From Silte Zone, Selected Bank Branches
Year: 2025
Type: article
Abstract: Banking industries play a major part within the financial development of a nation, but poor repayment practices of Borrowers remain major challenges of their financial performance. The purpose of this study is to investigate the Determinants of loan repayments on Commercial Bank of Ethiopia CBE (Evidence from Silte zone). In fact, identifying and analyzing such determining factors of loan repayment rate is vital in the achievement of profitability and sustainability of CBE. The study used both descriptive and explanatory research design with a Quantitative approach. As Silte zone, Total Target population consists of the 2960 borrowers; However, for this research from total population of 2960 borrowers, 296 (10%) sample respondents were selected through using the purposively sampling technique. In this connection, researchers’ collect a primary sources of data from sampled 296 Borrowers (as respondents); by using Questionnaires. And for analyzing, Binary logistic model was used. Through the study 14 determinants’ are selected for evaluation, out of which 9 variables are significant and remaining insignificant are found. As a whole, the model successfully predicted factors contributing to 89.9% of loan repayment problem among CBE. Based on the analysis, the studies recommend 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.
DOI: 10.20372/nadre:8900
Author: HINDIYA DAREBO
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6907358764
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