Socio-Economic Determinants of Loan Repayment Capacity of Somali Microfinance Clients in Kebridahar Town, Somali Regional State, Ethiopia

Somali microfinance finance institute (SMFI) was established to provide inclusive financial services rural and urban poor households with the ultimate goal of poverty alleviation in regional state. Even though SMFI is working better upgrade itself a licensed bank-Shabelle Bank showing livelihood improvement for region so far, loan repayment problems are currently major challenge facing institute, which can discourage it from promoting extending credit people future. Therefore, this study intended assess determinants capacity borrowers Kebridahar District Korahey Zone. Out total 4330 received branch, 188 representatives were selected by dividing into two strata, terms payment status defaulters non-defaulters. Data collected both primary secondary sources. The data sample using two-stage sampling method. Descriptive statistics an econometric model used analyze data. result descriptive revealed that Education level, household head experience credit, family size, marital status, diversion, occupation type, getting trained shown significant differences between According logistic regression out nine variables included model, Age, education access training positively significantly affected while (get-married) size found be negative affecting borrowers. recommends other concerning offices should give attention these further strategic policy decisions.