Determinants of Loan Repayment Performance of Micro and Small Enterprises: Empirical Evidence from Somali Regional State, Ethiopia

Microfinance Institutions (MFIs) were introduced to reach a large number of active poor people who are excluded from the formal financial institutions due rigorous collateral requirements. As an instrument MFIs, was address need people. To operate successfully MFIs have unquestionable ensure that loan expended Micro and Small Enterprises (MSEs) be repaid back so as he can financially sustainable viable operation. In light this, this research study conducted analyze factors affecting repayment MSEs financed by Somali institution taking lender characteristics in consideration. Both primary secondary data employed. The collected distributing questionnaire through interview. A total 175 selected using purposive sampling technique. acquired various issues annual reports microfinance other concerned institutions. descriptive analysis econometric model, which is, binary logistic regression employed effect literature driven variables on MSEs. model used revealed among hypothesized affect period, grace timeliness release statistically significant Whereas size insignificant