Estimation of the contraction type effect on delayed repayments (Case study: Melli Bank in Semnan Province)

Delayed Repayments of the banking lone has become a serious challenge within Iranian Banking System especially during Recession & Inflation. Although the delayed repayments of loan has reduced from 2010 to 2016 but it is above the International standard. Of course this problem are due to enormous reasons. The main aim in this paper is to estimate the effect of the contraction type on this problem. Doing so we have collected a sample of size 1150 concerning the main bank, Melli Bank throughout Semnan Province in 2017 and used a Logistic approach. We found that there is statistically significant chance the repayment to the loan to be not on time; this is more probable when the contract is made on Leasing and Gharz al Hassaneh. Educated borrower are less likely and borrower from Mahdishahr city are more likely not to return the Bank Instalment on time. Sex has have no significant effect on repayment be on time or delayed.