Determinants of Loan Repayment from Customers of The Bank for Agriculture and Agricultural Cooperatives: Ban Phue, Udon Thani Province

Abstract

        The objectives of this research were to 1) to examine the customer’s loan repayment behavior, and 2) to examine the determinants of loan repayment from customers of Bank for Agriculture and Agricultural Cooperatives (BAAC), Ban Phue Branch, Ban Phue, Udon Thani. This quantitative research used purposive sampling method to get a sample group of 390 customers of BAAC, Ban Phue Branch. The qeusionnaire was collected data. Statistics used were frequency, percentage, mean, standard deviation, and multiple logistic regression analysis.
        The results showed that: the customer’s loan repayment behavior found that the majority of the respondents were the average bank loan at 13 years. The average first loan balance was 97,531 baht and used as collateral for real estate and individuals (37.50%). The respondents used the characteristic of individual loans (68.52%) with average outstanding balance of 297,237 baht, average loan interest rate 7.27% and mortgage loan (64.45%). The majority of the samples had paid payments on a regular basis (77.34%). The factors were affected the debt repayment of BAAC, Ban Phue brunch Udon Thani province, in which positively significant banking factors such as collateral for real estate loans and satisfaction on bank officers’ services are affected. On the contrary, for negative significant factors that affect the debt repayment are economic factors such as emergency costs during the repayment period and banking factors such as loan interest rates.