DETERMINANT FACTOR AFFECTING LOAN REPARYMENT PERFORMANCE: (ACASE STUDY Of commercial BANK IN Gubre BRANCH)

Abstract

Banks role in the economy of any country are very significant. They play intermediation function in that they collect money from those who have excess and lend it to others who need it for their investment. Availing credit to borrowers is one means by which banks contribute to the growth of economies. They are many factors affecting bank‟s efficiency and effectiveness in achieving its goal and objectives. Such as: - repayment performance, cash management and so on. This study was conducted with the aim of identifying the major factors behind the default problem of borrower‟s particular reference to commercial banks. This study intends to determinant factors affecting loan repayment performance in order to achieve objectives. The study was adopted by both qualitative and quantitative approach. Primarily data were collected from 12 employees of the bank holding different position selected through sampling census by including all employees who are involving in loan related work by distributing a self – administrated questionnaire. Moreover secondary data were obtained from the recorded document of the bank. For the data analysis statistics including tables, percentages were used to assess or described the phenomena that influencing repayment. The finding of the study shows that training and regulation of credits, loan monitoring , and supervision, credit term and conditions, interest rate of the loan, loan reputation and loan amount by bank assign the factors affecting loan repayment performance determinant