Abstract:
The research examined factors affecting
performing and non performing borrower's
repayment ability of Regional Development Bank
in North Central Province. This study was done
collecting data from both performing and non
performing borrowers of Regional Development
Bank in Medirigiriya area. The dependent variable
of the study was loan repayment ability and the
independent variables were information about
borrower's income, loan amount, borrower's
background, accessibility of getting loan and
information about guarantee. The collected data
analyzed using descriptive statistics, correlation
and regression analysis. According to regression
res lilt of performing holders, it was found that
information about guarantee has significantly
impact on borrower's loan repayment ability. On
The other hand, The regression result of non
performing holders indicated that there are
statically significant impact of background
investigation and information about guarantee on
loan repayment ability.
