Home / Collection / College of Business and Economics / Economics / View Item
This study has mainly focused on factor that affects the performance of revolving loan fund and to identify practical factors of the program during the implementation. Multi- stage sampling techniques were used to select the respondents in the study area. This study used simple ransom sampling technique from primary sources which were collected from 307 respondents by structured questionnaires. The study was analyzed by descriptive statistics and econometrics analysis such as logistic regression. In this research shows that the revolving loan fund is not sufficient to do all the business and also the borrowers did not have interested to repay the loan because one of reason is the , weak legal enforcement for defaulters, low supervision by the stakeholder and also some reason is cost of doing business is higher than the revenue and some demography factors such as age, educational level gender affect the performance of revolving fund and the study has found that the collateral used by the loan providers were found to be reasonable for the majority of the borrowers and there is weak supervision hence ,this is the factors of the performance of RLF and thus, in logit model results shows that age, levels of education, collateral, repayment period, business type and management of the group is positive and sex, loan size/amount and business form is negative relationships with the revolving loan fund repayment performance and it is recommended that the government and relevant body’s needs to focus on monitoring loan utilization systems of borrowers and technical support needs of the target borrowers through delivering better awareness creation to organize the more viable borrowers, screaming the borrower effectively, close supervision and follow-ups and strengthening their internal and external weaknesses though better integration with key partner stakeholders.
| No file attached. |