ASSESSMENT OF FACTORS AFFECTING LOAN REPAYMENT PERFORMANCE IN OMO – BANK (IN THE CASE OF WOLKITE BRANCH)

Abstract

Commercial banks have a significant role in the development of one’s country’s economic development by providing credit and also a saving service for those productive clients. Though there are many factors that can affect the efficiency of the institution like, loan management and processing system, cash management, and loan repayment performance. This study was conducted with the aim of analyzing the factors that influence Banks loan repayment performance, specifically in omo bank in Wolkite town using primary data collected through a self-administered questionnaire. This study intends to assess the factors affecting the loan repayment performance of the beneficiaries of omo bank. In order to achieve this objective, the study was adopted a mixed research approach. Primarily data were collected from 20 institution employees holding different positions with using a self-administered questionnaire. For the data analysis, descriptive statistics including percentages, median and standard deviation were used to assess or described the phenomena that influence repayment rates.