The result indicated that there is strong relation between
borrowers’ culture/orientation and occurrence of nonperforming
loans. Therefore, borrower’s orientation/culture is one of the
causes for loan default. Moreover, high interest rate also causes
for the occurrence of nonperforming loans. Both lenient/lax
credit terms & difficulty in understanding credit terms leads to
loan default. Similarly, poorly negotiated credit terms lead to
nonperforming loans as confirmed by the majority of respondents
(See table 4 below).