The study investigated the loan repayment, its determinants
and socio-economic characteristics of microfinance loan
beneficiaries in the Southeast states of Nigeria. It was carried
out in three states of the five southeast states. Using a multistage
sampling technique, a total of 144 loan beneficiaries in the
three segments of MFIs, namely; formal (commercial and development
banks); semi-formal (NGOs-MFIs) and informal
(ROSCAS, “Isusu” and co-operative societies) were randomly
selected and interviewed in the three states. An ordinary least
square (OLS) multiple regression analysis was carried out to
isolate and examine the determinants of loan repayment from
the respondents’ perspective. Results showed that beneficiaries
had low level of education, operated enterprises at a relatively
small scale, had large family size and were of middle age.
Further, it was found out that the majority of the respondents
were involved in farming enterprise (crop and poultry) even
though trading was the most prominent single non-farming
enterprise (trading, processing and artisanship). The result affirmed
that the informal sector respondents recorded the best
repayment rate, followed by the respondents of semi-formal
and the banks brought the rear. Outstanding among the deter
-
minants of loan repayments from the respondents’ perspective
were; loan size, level of education, experience, profitability
and portfolio diversity. These, therefore deserve special attention
in loan administration of MFIs.