Factors Affecting Loan Repayment Performance of Smallholder Farmers

The study was conducted in Eastern Hararghe Zone, of the Oromiya Regional State, in Ethiopia. As stated in the objectives, the main aim of the study was to identify important demographic, socio-economic and institutional factors that affect loan repayment performance of smallholder farmers who borrow from formal credit sources. It was envisaged that the study would provide information that will enable effective measures to be undertaken to improve the loan repayment performance and the success of rural credit programs. It would also enable lenders, such as non-governmental organizations, and policy makers, to appreciate and understand where and how to channel efforts to minimize loan defaulting. The study was also expected to contribute towards better credit administration with a possible pay-off in improved loan repayment.