Abstract:
The major objective of this study is to identify the determinants of loan repayment
performance in OCSSCO, Kersa/Jimma branch which is found in Serbo town, the
capital of Kersa district. To achieve the objective, sample borrowers including both
defaulters and non-defaulters were selected using stratified systematic sampling. A
sample of 330 was selected using stratified and systematic sampling of 2400
population in the branch from which only 220 of them participated in the study.
Interview questionnaire, secondary data and key informant interview were used to
collect relevant data for the study. Both descriptive and inferential statistics were
used to analyze the collected data. The study found that marital status, ownership of
fixed assets, loan diversion, supervision, mode of lending and repayment period were
found to significantly affect loan repayment by clients. Therefore, the branch should
give due attention to this factors while giving credit.
