Assessment of Loan Repayment Determinant Factors in Microfinance Institutions: The Cases of ADCSI, SFPI And GASHA MFIS
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Date
2016-06
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Addis Ababa University
Abstract
The study had looked at the potential of the country regarding loan repayment determinant
factors by taking three MFIs as evidence. The study had used both primary and secondary
data. The primary data is collected by a means of interview and questionnaire. The secondary
data for the study were the empirical literatures of dependent and independent variables. The
study had found variables that can affect the loan repayment activities of the three MFIs
SFPI, ADCSI, and Gasha. One variable is used with the dependent variable that is the loan
repayment of the MFIs. The data for this variable was collected from these three MFIs with
questioners and interview. The correlation model is constructed for the dependent variable
and the seventeen independent variables. Hypothesis testing is performed using spear man
correlation coefficient method because of the independent variables are non-parametric
variables. As a result of the hypothesis testing it was found that all the seventeen variables
can affect loan repayment of the MFIs. All these variables had positive and significant effect
on loan repayment performance. Finally the study had recommended what should be done to
improve the loan repayment activities.
Key words: Micro Finance Institution, Loan, repayment
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Keywords
Micro Finance Institution, repayment, Loan