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Determinants of rural women’s loan repayment performance: The case of Gondar Zuria District, North Gondar, Amhara Regional State

Abstract

Haimanot Atinkut , Muluken Melese , Dida Qonchera , Akpodee Nyerhovwo Martins , Demirew Kassa4 and Aynalem Amalo

Consideration of loan repayment performance is vital for it provides information that would enable to undertake effective measures with the aim of improving loan repayment performance. Hence, assessment of factors determining loan repayment is the most appropriate examination method in order to determine loan defaults and non-defaults among the borrowers. This study was conducted with the objectives of assessing the sources of credit, pattern of utilization by borrowers and factors determining the repayment performance by rural women. Both primary and secondary data were employed in the study with both quantitative and qualitative nature. The primary data were sourced from the sampled households through semi-structured questionnaire and secondary data were also obtained from published and unpublished documents, and library. Quantitative data were analyzed and interpreted using descriptive statistics and the qualitative data were also analyzed and interpreted qualitatively. Among hypothesized independent variables age, education, family size, land holding, livestock owned, source of income, crop type, training, extension contact and repayment period significantly determine loan repayment performance. Thus, the study provided information which enables to take effective measures in order to bridge the repayment gaps within the borrowers.

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