Abstract:
The study was conducted in west Shoa zone and its aim was to determinants of loan repayment
performance of Siinqee bank borrowers. To achieve the objective of the study, explanatory
and descriptive research designs with qualitative and quantitative research approaches have
employed. This study was applied a multi-stage sampling design in order to select the
borrowers respondents of Siinqee Bank s.c. The study used both primary and secondary data
sources. To achieve the objective the primary data was collected through questionnaires and
interview from a sample of 194 borrowers selected from the total population of 16,991 using
simple random sampling techniques. Secondary data were used from published and
unpublished documents of their office to know profile of borrowers. The collected data was
analyzed by employing descriptive statistics and a binary logistic regression model by using
SPSS software version 20. This result indicated that out of sixteen predicting variables used
in this study eleven variables were found to be significant that influence loan repayment
performance of Siinqee bank borrowers in the study area. Based on the findings, borrowers
who reside in areas where there are security problems have lower loan repayments compared
to those of other parents, so the government should intervene to stabilize the security
problems and the borrowers that high have training able to pay better than the borrowers
that were in lower have training therefore; the Siinqee bank should provide adequate training
before issuing loans; Also the amount of loan size given to borrowers should be
commensurate with their business therefore, the bank should take into consideration the loan
size.
