Factors Contributing to Repayment Behavior of Micro Loans in Agricultural Bank of Meshkinshahr

Abstract

The purpose of this study was to identify factors influencing on repayment behavior of loans by farmers who received loans from rural branches of Agricultural Bank in Meshkinshahr. Data for this study was obtained from a sample of one- hundred- and -fifty farmers who defaulted in paying their loans to Agricultural Bank. Logistic regression through strata software was used to analyze data. According to the results, the variables of supervision, occupation, other credit received, and education were found to be significant predictors of repayment in Agricultural Bank of Meshginshahr. Findings of this study will give valuable insights to policy makers and planners in the bank in terms of awarding micro loans which can be used in credit policies of the bank.