Facebook Twitter Linkedin
HOME btn ABOUT US btn JOURNALS btn AUTHORS btn CONFERENCE PROCEEDINGS btn SEARCH btn CONTACT US  
  home bred bred bred bred bred bred bred  
   LIST OF ACADEMIA JOURNALS
btn Academia Journal of Biotechnology
btn Journal of Business and Economic     Management
btn  Academia Journal of Medicinal Plants
btn Academia Journal of Environmental     Sciences
btn Academia Journal of Agricultural     Research
btn Academia Journal of Educational     Research
btn Academia Journal of Food Research
btn Academia Journal of Scientific     Research
btn Academia Journal of Microbiology    Research
btn  Engineering and Technology
btn Academia Journal of Pharmacy and     Pharmacology
btn Medicine and Medical Sciences
 
   USEFUL LINKS

 

Classifications

  1. J. Bus. Econ. Manag.


jbem banner

Research Article

Journal of Business and Economic Management 8(12): 441-451, December 2020
DOI: 10.15413/jbem.2020.0147
ISSN 2315-7755
2020 Academia Publishing

 

Abstract

 

Determinants of loan repayment performance of smallholder farmers in Ethiopia

 

Accepted 1st September, 2020

 

Feda Etefa*, Matewos Kebede and Monanol Terfau

Jimma University, Department of Accounting and Finance, . P.O. Box: 387 Jimma Ethiopia.


This study was conducted to examine determinants of smallholder farmer’s loan repayment performance in Alge Sachi district, South Western Ethiopia. The study has used Purposive and proportionate sampling technique in order to select sampled kebeles and households, respectively. Hence, from five kebeles which has large number of credit users, 95 farmers were selected from 1763 household credit users in the district. Both primary and secondary data were collected for this study. Primary data was collected through questionnaire and interview whereas, secondary data was collected from records of OCSSCO Suphe Sodo branch. Descriptive statistics was used in order to summarize and describe the socio-economic characteristics of the respondents. Furthermore, chi-square test was used to test the association between the explanatory variables and the dependent variable. In addition, binary logistic econometric model was employed in order to identify the significant factors that influence loan repayment performance of the selected sampled household farmers. A total of eleven explanatory variables were included in the econometric model and they were: Gender, age, marital status, educational level, family size, income from farming, farmland size, group size, loan size, distance from the institution and training. Seven of these variables were found to be statistically significant determinants of loan repayment. Depending on his finding, the researcher has made some recommendations.

Key words: Loan repayment performance.

 

This is an open access article published under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Cite this article as:

Etefa F, Kebede M, Terfa M (2020). Determinants of loan repayment performance of smallholder farmers in Ethiopia J. Bus. Econ. Manag. 8(12): 441-451.

Copyright 2020 Academia Publishing. All rights reserved