Statistical Analysis of Determinants of Credit Loan Payment in Arba Minch Town, Ethiopia Using Logistic Regression Model

Belayneh Debasu Kelkay; Zelalem Esubalew

doi:doi:10.11648/j.ijsd.20170301.12

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Statistical Analysis of Determinants of Credit Loan Payment in Arba Minch Town, Ethiopia Using Logistic Regression Model

Belayneh Debasu Kelkay, Zelalem Esubalew

Published in International Journal of Statistical Distributions and Applications (Volume 3, Issue 1)

Received: 15 November 2016 Accepted: 23 February 2017 Published: 26 April 2017

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Abstract

Ethiopia has one of the fastest-growing economies in the world and is Africa’s second most populous country (IFC, 2012). In developing countries, like Ethiopia, financial resource is important input for continuous development. Most of the peoples living in under poverty line need wide range financial services for consumption, running their business and building assets. Due to lack of collateral, poor people in most cases have no credit access from Banks. Microfinance offers financial service such as loan, savings and micro insurance to the poor people either in individual or in a group basis to those people. The objective of this study isto investigate the factor that affects credit loan payment performance of urban people in ArbaMinchSeachasubcity. For this study the researcher would be used stratified sampling for proportional allocation because this study concerned on strata level.From 15336 total people live in this sub-town a sample of 95 person were randomly selected. The estimation results of the descriptive statistics and the logistic regression model show that age,sex, level of education, family size,attitude,awareness and number of times borrowed are important and significant factors that enhance using of credit loan activity. And the other variable is not significant factors that improve using of credit loan action like, marital status and religious.

Published in	International Journal of Statistical Distributions and Applications (Volume 3, Issue 1)
DOI	10.11648/j.ijsd.20170301.12
Page(s)	7-12
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Credit Loan Payment, Logistic Regression, Secha Sub-city

References

[1]	Aryeetey, Ernest, and William Steel, (1995).Saving s collectors and financial intermediation in Ghana. Savings and Development 19(2):189-199.
[2]	AnbeseTenaye, (2003).Pattern of credit use and its impact on small farmer’s income.A study in Dire Dwa area. Eastern Ethiopia.un published M.Sc.
[3]	Beck man, T.N. and Foster.R.S.(1969). Credit and collection, Management.
[4]	Befkadu, (2007). Outreach and financial performance of analysis of micro finance institution in Ethiopia. African Economic Conference.
[5]	Belay Kebede, (1998). Credit and factor impeding loan payment performance of small holder in central high lands of Ethiopia.
[6]	Hussein Hamada, (2007). Farm House holds Economic Behavioral in Imperfect Financial Markets, Doctoral thesis, Swedish University of Agricultural Sciences, Uppsala.
[7]	IFC (2012)"Private Sector Boosts Ethiopia's Growth".
[8]	KebedeKoomsa, (1995).Agricultural credit Analysis. National Agricultural policy work shop.
[9]	Pinkie, (1998). Formal and Informal sector interaction in rural credit markets. Journal of development economics 56:265-280.
[10]	Sherraden, M. (2001).Asset building policy and programs for the poor.InT.Shapiro and E. Wolff (Eds.), Asset for the poor.
[11]	Solomon Damte,(1996) “credit to poor Households, The case of financing micro enterprises in the DebreBerhan town, North shoa, in the Ethiopian Economy: poverty and poverty alleviation” proceeding of the 5^th annual, conference on the Ethiopian economy, Addis Ababa.
[12]	TeferiZewdu,(2000) micro finance and the poor: The case of dedebit credit and saving Institution (DESCI).
[13]	Vigno, Lawara. (1993). Credit scoring model for development Banks: An African case study, saving and Development vol. XVII.

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APA Style

Belayneh Debasu Kelkay, Zelalem Esubalew. (2017). Statistical Analysis of Determinants of Credit Loan Payment in Arba Minch Town, Ethiopia Using Logistic Regression Model. International Journal of Statistical Distributions and Applications, 3(1), 7-12. https://doi.org/10.11648/j.ijsd.20170301.12

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ACS Style

Belayneh Debasu Kelkay; Zelalem Esubalew. Statistical Analysis of Determinants of Credit Loan Payment in Arba Minch Town, Ethiopia Using Logistic Regression Model. Int. J. Stat. Distrib. Appl. 2017, 3(1), 7-12. doi: 10.11648/j.ijsd.20170301.12

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AMA Style

Belayneh Debasu Kelkay, Zelalem Esubalew. Statistical Analysis of Determinants of Credit Loan Payment in Arba Minch Town, Ethiopia Using Logistic Regression Model. Int J Stat Distrib Appl. 2017;3(1):7-12. doi: 10.11648/j.ijsd.20170301.12

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@article{10.11648/j.ijsd.20170301.12,
  author = {Belayneh Debasu Kelkay and Zelalem Esubalew},
  title = {Statistical Analysis of Determinants of Credit Loan Payment in Arba Minch Town, Ethiopia Using Logistic Regression Model},
  journal = {International Journal of Statistical Distributions and Applications},
  volume = {3},
  number = {1},
  pages = {7-12},
  doi = {10.11648/j.ijsd.20170301.12},
  url = {https://doi.org/10.11648/j.ijsd.20170301.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijsd.20170301.12},
  abstract = {Ethiopia has one of the fastest-growing economies in the world and is Africa’s second most populous country (IFC, 2012). In developing countries, like Ethiopia, financial resource is important input for continuous development. Most of the peoples living in under poverty line need wide range financial services for consumption, running their business and building assets. Due to lack of collateral, poor people in most cases have no credit access from Banks. Microfinance offers financial service such as loan, savings and micro insurance to the poor people either in individual or in a group basis to those people. The objective of this study isto investigate the factor that affects credit loan payment performance of urban people in ArbaMinchSeachasubcity. For this study the researcher would be used stratified sampling for proportional allocation because this study concerned on strata level.From 15336 total people live in this sub-town a sample of 95 person were randomly selected. The estimation results of the descriptive statistics and the logistic regression model show that age,sex, level of education, family size,attitude,awareness and number of times borrowed are important and significant factors that enhance using of credit loan activity. And the other variable is not significant factors that improve using of credit loan action like, marital status and religious.},
 year = {2017}
}

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TY  - JOUR
T1  - Statistical Analysis of Determinants of Credit Loan Payment in Arba Minch Town, Ethiopia Using Logistic Regression Model
AU  - Belayneh Debasu Kelkay
AU  - Zelalem Esubalew
Y1  - 2017/04/26
PY  - 2017
N1  - https://doi.org/10.11648/j.ijsd.20170301.12
DO  - 10.11648/j.ijsd.20170301.12
T2  - International Journal of Statistical Distributions and Applications
JF  - International Journal of Statistical Distributions and Applications
JO  - International Journal of Statistical Distributions and Applications
SP  - 7
EP  - 12
PB  - Science Publishing Group
SN  - 2472-3509
UR  - https://doi.org/10.11648/j.ijsd.20170301.12
AB  - Ethiopia has one of the fastest-growing economies in the world and is Africa’s second most populous country (IFC, 2012). In developing countries, like Ethiopia, financial resource is important input for continuous development. Most of the peoples living in under poverty line need wide range financial services for consumption, running their business and building assets. Due to lack of collateral, poor people in most cases have no credit access from Banks. Microfinance offers financial service such as loan, savings and micro insurance to the poor people either in individual or in a group basis to those people. The objective of this study isto investigate the factor that affects credit loan payment performance of urban people in ArbaMinchSeachasubcity. For this study the researcher would be used stratified sampling for proportional allocation because this study concerned on strata level.From 15336 total people live in this sub-town a sample of 95 person were randomly selected. The estimation results of the descriptive statistics and the logistic regression model show that age,sex, level of education, family size,attitude,awareness and number of times borrowed are important and significant factors that enhance using of credit loan activity. And the other variable is not significant factors that improve using of credit loan action like, marital status and religious.
VL  - 3
IS  - 1
ER  -

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Author Information

Belayneh Debasu Kelkay

Department of Statistics, College of Natural Sciences, Arba Minch University, Arba Minch, Ethiopia
Zelalem Esubalew

Department of Statistics, College of Natural Sciences, Arba Minch University, Arba Minch, Ethiopia

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Plain Text BibTeX RIS

APA Style

Belayneh Debasu Kelkay, Zelalem Esubalew. (2017). Statistical Analysis of Determinants of Credit Loan Payment in Arba Minch Town, Ethiopia Using Logistic Regression Model. International Journal of Statistical Distributions and Applications, 3(1), 7-12. https://doi.org/10.11648/j.ijsd.20170301.12

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ACS Style

Belayneh Debasu Kelkay; Zelalem Esubalew. Statistical Analysis of Determinants of Credit Loan Payment in Arba Minch Town, Ethiopia Using Logistic Regression Model. Int. J. Stat. Distrib. Appl. 2017, 3(1), 7-12. doi: 10.11648/j.ijsd.20170301.12

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AMA Style

Belayneh Debasu Kelkay, Zelalem Esubalew. Statistical Analysis of Determinants of Credit Loan Payment in Arba Minch Town, Ethiopia Using Logistic Regression Model. Int J Stat Distrib Appl. 2017;3(1):7-12. doi: 10.11648/j.ijsd.20170301.12

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@article{10.11648/j.ijsd.20170301.12,
  author = {Belayneh Debasu Kelkay and Zelalem Esubalew},
  title = {Statistical Analysis of Determinants of Credit Loan Payment in Arba Minch Town, Ethiopia Using Logistic Regression Model},
  journal = {International Journal of Statistical Distributions and Applications},
  volume = {3},
  number = {1},
  pages = {7-12},
  doi = {10.11648/j.ijsd.20170301.12},
  url = {https://doi.org/10.11648/j.ijsd.20170301.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijsd.20170301.12},
  abstract = {Ethiopia has one of the fastest-growing economies in the world and is Africa’s second most populous country (IFC, 2012). In developing countries, like Ethiopia, financial resource is important input for continuous development. Most of the peoples living in under poverty line need wide range financial services for consumption, running their business and building assets. Due to lack of collateral, poor people in most cases have no credit access from Banks. Microfinance offers financial service such as loan, savings and micro insurance to the poor people either in individual or in a group basis to those people. The objective of this study isto investigate the factor that affects credit loan payment performance of urban people in ArbaMinchSeachasubcity. For this study the researcher would be used stratified sampling for proportional allocation because this study concerned on strata level.From 15336 total people live in this sub-town a sample of 95 person were randomly selected. The estimation results of the descriptive statistics and the logistic regression model show that age,sex, level of education, family size,attitude,awareness and number of times borrowed are important and significant factors that enhance using of credit loan activity. And the other variable is not significant factors that improve using of credit loan action like, marital status and religious.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Statistical Analysis of Determinants of Credit Loan Payment in Arba Minch Town, Ethiopia Using Logistic Regression Model
AU  - Belayneh Debasu Kelkay
AU  - Zelalem Esubalew
Y1  - 2017/04/26
PY  - 2017
N1  - https://doi.org/10.11648/j.ijsd.20170301.12
DO  - 10.11648/j.ijsd.20170301.12
T2  - International Journal of Statistical Distributions and Applications
JF  - International Journal of Statistical Distributions and Applications
JO  - International Journal of Statistical Distributions and Applications
SP  - 7
EP  - 12
PB  - Science Publishing Group
SN  - 2472-3509
UR  - https://doi.org/10.11648/j.ijsd.20170301.12
AB  - Ethiopia has one of the fastest-growing economies in the world and is Africa’s second most populous country (IFC, 2012). In developing countries, like Ethiopia, financial resource is important input for continuous development. Most of the peoples living in under poverty line need wide range financial services for consumption, running their business and building assets. Due to lack of collateral, poor people in most cases have no credit access from Banks. Microfinance offers financial service such as loan, savings and micro insurance to the poor people either in individual or in a group basis to those people. The objective of this study isto investigate the factor that affects credit loan payment performance of urban people in ArbaMinchSeachasubcity. For this study the researcher would be used stratified sampling for proportional allocation because this study concerned on strata level.From 15336 total people live in this sub-town a sample of 95 person were randomly selected. The estimation results of the descriptive statistics and the logistic regression model show that age,sex, level of education, family size,attitude,awareness and number of times borrowed are important and significant factors that enhance using of credit loan activity. And the other variable is not significant factors that improve using of credit loan action like, marital status and religious.
VL  - 3
IS  - 1
ER  -

Copy | Download