Analyzing the Impact of the Loan Repayment Period on the Amount of Bank Debt of Agricultural Businesses in Sirvan Township

Subject Areas : Agricultural Extension and Education Research

homayoon moradnezhadi ¹ , samireh saymohammadi ² , khadijeh hadidi ³

1 - 2. Associate Prof., Department of Entrepreneurship and Rural Development, Ilam University, Ilam, Iran.
2 - ilam university
3 - MSc. Graduated of entrepreneurship and rural development, Department of entrepreneurship and rural development ,Ilam University, Ilam, Iran.

Received: 2024-01-09 Accepted : 2024-05-27 Published : 2024-06-11

Keywords: : loan repayment period, bank debt, agricultural businesses, agricultural bank, Sirvan.,

Abstract :

Financial markets play a fundamental role in equipping and allocating investment resources to economic activities. As financial intermediaries, banks have taken a significant part of the financial markets in financing investments; but the lack of clear policies and the existence of production and market risks usually make established businesses face a crisis and make them unable to repay bank loans on time. This research was also conducted with the aim of analyzing the effect of the loan repayment period on the amount of bank debt of agricultural businesses in Sirvan city of Ilam province. The research methodology is applied in terms of its purpose, quantitative in terms of the nature of the data, and descriptive-correlation in terms of the method of data collection. The size of the statistical population was the owners of 861 rural businesses, of which 266 managers were selected using Cochran's formula and simple random method as the sample size and information such as gender, type of business, the amount of facilities received, the length of the repayment period, the history of receiving facilities, the amount of debt and The elapsed time from obtaining the facility was collected. Data analysis was done using SPSS version 26 software. The findings showed that the company's bank debt decreased with the increase in the repayment period of the facility. It was also found that with the increase in the amount of received facilities, the amount of business debt has also increased.