Abstract: Current study examined factors affecting to farmers loan repayment ability in North Central Province. While dependent variable was loan repayment and independent variables were information about income, information about loan amount, background investigation, time taken to lend money and information about guarantee. The collected data were analyzed by using reliability test, descriptive analysis, correlation analysis and multiple linear regression analysis. The result was generated from answers taken from 125 randomly selected borrowers in North Central Province area and data were analyzed through SPSS software. According to regression result of the performing loan holder sample which shows that information about guarantee significantly affect to the loan repayment. Total sample of this study reflect that background investigation and information about guarantee have significant effect on loan repayment and there is no significant effect of information about income, information about loan amount and time taken to lend money on loan repayment. Finally this study concluded that background investigation and information about guarantee are the factors which significantly affect for the loan repayment.
Keywords: Loan Repayment Ability, Farmers, North Central Province, Borrowers.
Title: Loan Repayment Ability of Farmers in Sri Lanka: Exploring North Central Province
Author: Dr. W.P. Wijewardana, HH. Dedunu
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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