Lender Specific Factors and Repayment of Individual Loans Provided by Youth Enterprise Development Fund in Embu County, Kenya
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Date
2024-02
Authors
Mwaniki, Pius Njagi
Makori, Daniel
Irungu, Anthony Mugetha
Journal Title
Journal ISSN
Volume Title
Publisher
AJOEI
Abstract
Purpose of the Study: This study aims to investigate the impact of lender-specific factors on
the repayment of individual loans provided by the Youth Enterprise Development Fund
(YEDF) in Embu County, Kenya.
Statement of the Problem: Lender-specific factors significantly influence loan repayment
behavior by individuals and organizations. Favorable lending terms and procedures encourage
loan repayment, while unfavorable ones lead to defaults. The YEDF has experienced an
increase in defaults on individual loans. While previous research on lender-specific factors and
loan repayment presents mixed results, local studies reveal research gaps in this area within
Embu County. Therefore, this study examines the effect of lender-specific factors on the
repayment of individual loans provided by YEDF in Embu County, Kenya.
Methodology: Employing an explanatory research survey design and positivism research
philosophy, the study targeted 705 individual loan youth beneficiaries from YEDF Embu
County. A stratified random sample of 255 individuals participated. Primary data was collected
using structured questionnaires and analyzed through descriptive and inferential statistics. Logit regression analysis was used to investigate the relationship between the explanatory
variables and the predicted variable (loan repayment).
Results: Descriptive analysis revealed that male beneficiaries outnumbered female
beneficiaries. The majority of individual loan beneficiaries were within the 30-34 age bracket
and were married. Most respondents reported having academic qualifications, while nearly all
lacked business management training. Additionally, the study found a positive effect of lenderspecific factors on loan repayment.
Conclusion: This study concludes that lender-specific factors have a statistically significant
positive effect on the repayment of individual loans provided by YEDF in Embu County,
Kenya.
Recommendation: The YEDF should prioritize streamlining and user-friendly application
processes to facilitate loan acquisition for youth beneficiaries.
Description
Article
Keywords
Lender, Repayment, Individual Loans, Youth, Enterprise Development Fund
Citation
Mwaniki, P. N., Makori , D., & Irungu , A. M. (2024). LENDER SPECIFIC FACTORS AND REPAYMENT OF INDIVIDUAL LOANS PROVIDED BY YOUTH ENTERPRISE DEVELOPMENT FUND IN EMBU COUNTY, KENYA. African Journal of Emerging Issues, 6(3), 11 - 22. Retrieved from https://ajoeijournals.org/sys/index.php/ajoei/article/view/545