Effect of Socio-economic Factors on Loan Repayment Performance of Youth Revolving Fund in Oromia Regional State, Ethiopia

Authors

Abebe Negesse Bantu, Haryana School of Business ,Guru Jambheshwar University of Science &Technology, Hisar-125001, HaryanaFollow
N.S. Malik, Haryana School of Business ,Guru Jambheshwar University of Science &Technology, Hisar-125001, Haryana

Article Type

Research Article

Abstract

Youth Revolving Fund (YRF) loan was established to help unemployed youths alleviate their economic and social difficulties. However, its loan repayment performance is not as expected. Thus, the objective of this study was to examine effect of socio-economic factors on loan repayment performance of YRF in Oromia Regional State. 328 data collected from 328 respondents and the result showed peer pressure, loan diversion, time of maturity of investment and predominant economic shocks were affected loan repayment at 5% level of significance. Finally, government is recommended to create awareness about YRF loan, reconsider training and guidance, and alternative fund utilization strategy.

Keywords

Youth revolving fund, Socio-economic factors, Loan repayment. Loan diversion

Recommended Citation

Bantu, Abebe Negesse and Malik, N.S. (2022) "Effect of Socio-economic Factors on Loan Repayment Performance of Youth Revolving Fund in Oromia Regional State, Ethiopia," Arab Economic and Business Journal: Vol. 14 : Iss. 2 , Article 8.
Available at: https://doi.org/10.38039/2214-4625.1020

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This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.