BORROWER'S CHARACTERISTICS AND LOAN REPAYMENT PERFORMANCE AMONG SMALL AND MEDIUM ENTERPRISES IN MOGADISHU, SOMALIA

Loan repayment among small and medium
enterprises in Mogadishu has remained a
challenge as demonstrated by the low
recovery rates recorded by the available
financial institutions like commercial banks
and microfinance institutions in Somalia.
This situation has contributed towards a
reduction on profitability margins reported
by these financial institutions. This study
was set out to establish the effect of
borrower's characteristics on loan
repayment performance among small and
medium enterprises in Mogadishu, Somalia.
The information asymmetry theory
provided anchorage to the study. Mixed
research design covering descriptive survey
design and correlational design was adopted
targeting 45 credit officers from financial