Identification and evaluation of factors affecting the non-repayment of loans granted by Keshavarzi bank to Ahwaz city ranchers

This study was aimed at prioritizing the factors affecting the non-repayment of loans granted by Keshavarzi bank to Ahwaz city ranchers. Statistical society of this study is 1351 ranchers received loans from Ahwaz city Keshavarzi bank, of which 950 ones neglected repaying the loan and 400 ones repaid it. Randomly selected as the sample of study, 270 ranchers neglecting loan repayment and 190 ones who repay the loan were questioned. Variables entered the model were industrial technology, number of livestock, on time receive of the loan, surveillance of bank authorities, participation in promotional and training classes, level of education, experience, insurance, and access to the market. Results of this study indicated that these variables have positive and significant relationship with loan repayment and the loan-to-asset ratio has negative effect on the probability of repayment by ranchers. So, the more the rate of using technology, number of livestock, on time receive of loan, surveillance of bank authorizes, participation in promotional and training classes, level of education, experience, insurance, and access to the market, the more the probability of loan repayment and the lower the loan-to-asset ratio, the more the probability of loan repayment by this city ranchers.

Keywords:

non-repayment , granted loans , ranchers , Ahwaz