Determinants Of Repayment Of ZTBL Loan In District Nowshera (KPK), Pakistan
Author: Fatima Bibi


Credit access and its repayments have been a challenge for both the lender and the borrower, and this has made financial bodies sceptical about giving out loans to entrepreneurs. The study examines the determinants of loan repayment among ZTBL borrowers in the Nowshera district of Khyber Pakhtunkhwa. The study presents empirical information on the farmer’s loan payback performance as determined by demographic factors and also provides an explanation of the elements influencing credit repayment behavior. This study also looks into the institutional variables that are considered when loan cases are processed, as well as the farmer’s ability to repay. In order to attain this, this study explores data from 115 loan borrowers of ZTBL belonging to the Nowshera district. For data analysis, descriptive statistics, t test and a binary logistic model are used.The findings indicate that financial factors were more important than demographic characteristics of agribusiness businesses in causing loan default. Financial institutions must ensure appropriate changes in financial factors to lower the loan default risk in the agriculture sector.

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Keywords : Binary Logistic Model, farm characteristics, loan repayment, Nowshera district, organizational factors, socio-economic factors, t-test, ZTBL
Supervisor: Ahmad Faraz

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