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Roya Eshraghi Samani, Farzad Sheykh Mohammadi, Alireza Poursaeed,
Volume 4, Issue 12 (9-2015)

The lack of investment in agriculture system of Iran, especially in family farmingoperation, has made this system vulnerable to natural and unnatural disasters andhazards. In this way, Keshavarzi bank is one of the institutions that plays a critical role in financing the agriculture system. In order to meet credit needs of farmers, Keshavarzi bank makes use of two main sources of saving mobilization and installment collection of due-date credit granted to the farmers. Due to the small amount of savings of this bank, compared with others, installment collection of due-date credit granted to farmers is the main financial resource to fulfill the desires of credit applicants. The nonrepayment of facilities or making delays in refunds will result in disturbance in fulfilling bank commitments. Any negligence in on-time repayment of due-date credits by farmers will cause in yield decline of collecting granted credits and financial resources, consequently. Therefore, regarding the on-time collection of granted credits as a main issue in the surviving of credit institutions together with the ever-growing rate of nonrepayment in Keshavarzi bank and high dependency of financial resources on collected credits, investigating effective factors contributing to the non-repayment of bank facilities is something essential. Due to the significance of credit granted by Keshavarzi bank and its non-repayment as one of the main reasons of the limitations applied in farming facilities in many countries, lots of researches have been done in this field to find a way and solve the existing problems. In these researches several issues related to the effectiveness of repaying agriculture loans have been taken into consideration to illustrate an appropriate approach for making well-planned decisions in coping with problems like this. Generally, researches indicate that there are different factors affecting non-repayment of facilities by Keshavarzi bank which can be classified in the context of economic, technical, financial or social features or in job specifications or personal ones.
This is an applied research which consists of quantitative nature and among those of non-experimental ones in terms of degree of the control of variables. Data collecting has been done in the same way as surveys. Statistical population including borrowers of several branches of Keshavarzi bank (N= 360) in Ilam county. Determining the size of samples, Krejcie and Morgan table has been used according to which the sample size of 186 people has been calculated. To get the samples for questioner accomplishment, stratified sampling method has been used. The questionnaire face validity (based on the comments by faculty members of Azad University) and reliability of the research tools have been determined by the use of Cronbach's alpha coefficient (α = 82%). The variable correlation has been calculated using Eta test. Effective factors contributing to the non-repayment of granted credits have been analyzed by stepwise forward method of logistic regression. Meanwhile, the data were processed and analyzed using SPSS statistical software.
Discussion and Conclusion
According to the survey, a vast majority of the granted funds has been devoted to livestock activities. These activities, considering the geographical and climate conditions of Ilam County, is among the investing priorities of its authorities and inhabitants. Moreover, the range of credit granted to most borrowers (66.6 %) has been from 5 to 30 million Tomans. The average time of repayment in the sampling case was about 6.91 years regarding 82.25% of borrowers repaying them in a period of 5 to 10 years. Present findings indicate that 63.44% of borrowers haven’t repaid their loans yet. It is only about 36.56% of borrowers who have paid them on-time. The results of the correlation coefficient test on dependent variables of repaying status and independent variables suggest that there is a high impact connection between the amount of personal  deposits at the time of taking the loan and the amount of credit, referral number assigned to the bank to take the loan, and non-repayment of the granted credits. Stepwise forward method of logistic regression has been used here to investigate effective factors contributing to the non-repayment of granted credits. Variables including the proceeds of agricultural activities, the amount of bank profit from granted credits, the referral number assigned to the bank to take the loan, the amount of installment, the amount of personal deposits at the time of taking the loan, any record of loan taking, the pay-off period and the supervising quality of bank inspectors were separately entered into the regression in seven different steps to predict about 0.768 percent of changes of dependent variable ( probability of non-repayment of granted facilities). Additionally, based on results from the regression analysis, any increase in the bank profits from received facilities, the referral number assigned to the bank to take the loan and the amount of taken credits will cause in the increase of the probability of non-repayment of the taken loan. As on the other hand, increasing of annuity from agricultural activities, the amount of personal deposit at the time of taking the loan, the pay-off period, the number of inspectors' supervision and record of loan taking will lead to the decrease of the probability of non-repayment.

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