dc.description.abstract | Agro based industry has been cited as major contributor in economic development in
Kenya. As is the case in other developing countries, securing financing and attaining high
loan performance remains a challenge. The Agricultural Finance Corporation (AFC) is
mandated to provide financial support through loans in Agro-based businesses in the
country. This research sought to determine the factors that determine loan performance in
agro based financial institutions and used AFC as a case study.
Factors such as age of borrower, bank balance, business relationship (personal, business
and new customer), interest rate, loan size, loan type and gender of borrower, borrower
education were analyzed to determine their relationship and impact on default. The study
used binary Logit model for analysis due to the dichotomous nature of the dependent
variable (Non-repayment). The study used a sample of 110 borrowers accounts randomly
selected within the period of study | en |