Analyzing Determinants of Loan Repayment Performance of Agriculture Bank in Maragheh

The objective of this study is to determine the factors affecting loan repayment performance of agriculture bank of Maragheh branch. Knowing these factors would improve performance of claims collection. So، claims classified in four groups of on time، past due، outstanding and suspicious. Required data has been gathered by reviewing files of borrowers of each group and the multi-nominal logit model has been used. The results of LR test and Wald test showed that there is no possible combination of above mentioned groups. Also، Hausman test results indicated that these groups are independent. The results of the multi-nominal logit model estimation suggested that the variables of loan amount، interval of installments، number of installments، kind of guarantee، extended، kind of credit، activities of horticulture، agronomy and services are statistically significant. The results also showed that loan amount and extended have a negative effect on the improvement of claims collection but other variables have a positive effect on it. Finally، the marginal effect and elasticity were calculated separately for every variable in each group.