Statistical analysis on the loan repayment efficiency and its impact on the borrowers: a case study of Hawassa City, Ethiopia

Yonas Shuke, Hawassa University

Now a day, microfinance loan is very important for every aspects of economic development in which repayment efficiency is one among many factors hindering loan size, delivery methods, institution capacity, and number of individuals involved in the system, etc. Thus, this paper there for, discusses about different factors affecting loan repayment efficiency and the impact seen on the clients in Hawassa city, Ethiopia. To analyze and suggest on this issue, so many statistical analysis like: Multivariate Factor Analysis; to reduce variables and to incorporate most significant impact of loan to the borrowers in Hawassa city, Classical and Bayesian Logistic regression: to investigate different factors affecting loan repayment efficiency by using date on hand and prior information. Similarly other methods like Chi-square tests of association and different software’s are used. Furthermore, some recommendation on methodology used and significant factor incorporated including police implications are suggested at final portion of the book.