Factors Affecting Loan Delinquency in a Bank in Manolo Fortich Bukidnon

This study aimed to examine the factors affecting loan delinquency at Manolo Fortich Bukidnon. It focused on the following: (1.) socio demographic profile of the respondents, (2.) bank’s loan policy, (3.) supervision and monitoring of loan utilization and repayment, and (4) whether multiple borrowing affects loan delinquency. The study was carried out in the Municipality of Manolo Fortich Bukidnon with a sample size of 100 respondents in a rural bank. The method used was quantitative and qualitative, hence focus group discussion was used. Numerical data were processed through Statistical Package for Social Scientists (SPSS) and were analyzed and presented in the form of frequencies, percentages, and tables. The findings of the study revealed that: the bank’s policy moderately leads to loan delinquency, the bank does not give importance to supervision and monitoring of loan utilization and repayment as long as the clients pay on time.Majority of the respondents have multiple borrowing which also caused some of the respondents to have difficulty in paying their loan contracts. Lastly, the study found out that the bank does not give emphasis on training, seminar and orientation to their clients.

Keywords: Loan delinquency, bank policy, loan supervision and monitoring, multiple loan