Loan Repayment Behaviour under Nagaland State Cooperative Bank Limited

The study was conducted in Nagaland at randomly selected district of Kohima, Dimapur and Mokokchung. The requisite information was collected from 120 borrowers taken loan during the year 1998–19 through random sampling, with the help of interview schedule. The repayment behaviour of the respondents indicated that only 25.0 per cent of the total borrowers (120) were found to be regular in repaying the loan within the specified period while 75.0 per cent had stop paying completely after initial installments or had never paid any installment due to some reasons. It was also found that the reasons for non-repayment of loan were due to low outcome from the project (73.33%), pressing family needs (56.67%), natural calamities (44.44%), less income source (40.0%), marketing problems and non-availability of raw materials (35.55%), mismanagement of income (31.11%), high interest rate (27.78%) followed by short time duration (26.67%) for loan recovery. Repayment behaviour also had positive significant correlation with socio-economic status, easy availability and perceived adequacy, whereas annual income and timely availability had positive correlation but non-significant. However, adoption behaviour and earner's percentage exhibited negative correlation with repayment behaviour.