Abstract:
The objective of this study was too assessed the Determinants of loan default and to
determine the magnitude of loan default saving and credit Cooperatives Societies in Toke
Kutaye Woreda. That both Quantitative and qualitative research approach and data were
collected from primary and secondary sources of data collection. The cross-sectional
survey was conducted using data collection instrument both questionnaire and interviews.
Target population to have 1,942 SACCOs members in Toke kutaye woreda three stage
sampling procedure was applied to select the sample respondents. In the third stage a
total of 200 SACCOs members was selected using simple random sampling methods ,
The sample size was determined based on the simplified formula propose by Yamane
(1967). The types of data analysis were applied in this study, namely descriptive statistics
determined the magnitude of loan default and econometric analysis is used such as
Multivariable Logistic Regression and Ordinary logistic regression Analysis of
Determinants of Loan Default in Saving and Credit Cooperatives. For both descriptive
statistics and econometric models analysis:-SPSS version 27 were employed. The result
indicated was determined the magnitude the Status of loan was analysis and loan default
frequency 155 (77.5%). The result was indicated the determinants of loan default sex
statistical significant, younger age none statistical significant, being married statistical
significant ,single SACCOs members none statistical significant compared with Widowed,
low household SACCOs members none statistical significant, the time between loan
application and disbursement none statistical significant, the chance used to intended
purpose of the loan none statistical significant, time given to borrower to pay back the
entire loan none statistical significant and experience the job was the loan you took of
SACCOs an individual non statistical significant. The study recommends that Develop
gender-specific financial education and support programs to address the higher
likelihood of loan default among female borrowers,. Positive social changes occur in
many areas including in increased household incomes because of doing profitable
businesses to minimize loan default. SACCOs members minimize time between loan
application, approval and disbursement schedule to facilitating loan and loan borrows on
timely to minims the risks of loan defaults. Credit’s process for personal loans is SACCOs
members simple and involves quick.
