ASSESSMENT OF FACTORS AFFECTING LOAN REPAYMENT PERFORMANCE IN OMO MICRO-FINANCE INSTITUTION IN WOLKITE TOWN BRANCH

Abstract

Micro finance institutions have a significant role for the development of one’s country economic development by providing a 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 conduct with the aim of analyzing the factors that influence micro-finance loan repayment performance, specifically in OMO micro finance institution in wolkite branch using primary data which wascollected through self-administered questionnaire. This study intends to assess the factors affecting loan repayment performance of the beneficiaries of OMO micro finance institution. In order to achieve this objective, the study adopted qualitative research approach. Primarily data were collected from 15 employees in the institution’s holding different positions select through purposive sampling techniques using a self-administered questionnaire.. For the data analysis, descriptive research designs the phenomena or variables that influencing the repayment rate. The study found that collateral, credit term, credit monitoring, loan supervision affects the loan repayment performance OMFI.