The result of the estimation of loan repayment equation is The semi-log functional form is the lead estimation. The regression is significant at 1% t level and the coefficient of determinant (R) is 0.30. The possible reason for the low R is that interest rate and loan period were the same for all the farmers because only one institution was studied and the loan period was one year. Consequently, the variables disappeared during the estimation of and this probably affected the explanatory power of the model.