APPENDICES

QUESTIONNAIRE
FACTORS AFFECTING LOAN DEFAULT IN LB FINANCE EVIDENCE FROM TRINCOMALEE
DISTRICT
Dear sir /Madam I am a BMS student of Faculty of Management studies, The Open University, Sri
Lanka. I have undertaken a research study on the topic of “factors affecting loan default in lb finance
evidence from trincomalee district as the partial requirement of the fulfilment of my Bachelor of
Management studies degree. For this purpose, I need your corporation in filling the questionnaire. I assure
that the information obtained would be used only for this study and will be dealt with confidentiality.
Yours faithfully
Mr. Ravichander karishman.
Part 1
Name of the finance company ……………………………………..
Address………………………………………………………………
Personal details ……………………………………………………..

(a) Gender
(1) Male (2) female
(b) marital status
(1) single (2) marital
(c) education level
(1) certificate (2) diploma
(3) degree (4) masters
(d) age level (years)
(1) below 30 (2) 30-40
(3) 40-50 (4) above 50
(e) number of employees
(1) 0-5 (2) 5-20

(3) 20-50 (4) above 50

(f) amount of capital

(1) below 2 million (2) 2-20 million
 (g) how long has your finance been established
(1) less than 2 years (2) 2-5 years

Part 2
1. Loan collection procedures
Please put the suitable figure for the following statements regarding the loan collection procedures.
Please select your answer by ticking (X)
1=Strongly Disagree 3 = Neither agree or disagree 5 = Strongly agree
2= Disagree 4 = Agree

Loan
collection
procedures
08 There exists a long list of loan defaulters 1 2 3 4 5
09 Price changes influence default 1 2 3 4 5
10 There unwillingness to pay loans 1 2 3 4 5
11 No loan defaulters 1 2 3 4 5

2. Diversion of loan defaulters

Please put the suitable figure for the following statements regarding the diversion of loan defaulters .
Please select your answer by ticking (X)
1=Strongly Disagree 3 = Neither agree or disagree 5 = Strongly agree
2= Disagree 4 = Agree

Diversion
of loan
defaulters
12 A plan of action before loan application 1 2 3 4 5
13 Monitoring of loan use 1 2 3 4 5
14 Members don’t follow the agreed plan 1 2 3 4 5
15 Members divert loan purpose 1 2 3 4 5
16 Members use money borrowed to meet family needs 1 2 3 4 5
17 Some members use their loans to pay for defaulting 1 2 3 4 5
members
18 Over indebtness is a case for loan diversion 1 2 3 4 5
 3. Finance management practice
Please put the suitable figure for the following statements regarding the finance management practice .
Please select your answer by ticking (X)
1=Strongly Disagree 3 = Neither agree or disagree 5 = Strongly agree
2= Disagree 4 = Agree

Finance
management
practice
19 Group members have a basic knowledge in 1 2 3 4 5
business management
20 Trained members on skill related to their business 1 2 3 4 5
21 Keep a record of their daily counter and pawing 1 2 3 4 5
service
22 Always monit of business 1 2 3 4 5

4. Amount of loan borrowed

Please put the suitable figure for the following statements regarding the amount of loan borrowed . Please
select your answer by ticking (X)
1=Strongly Disagree 3 = Neither agree or disagree 5 = Strongly agree
2= Disagree 4 = Agree

Amount of
loan
borrowed
23 The amount borrowed by members sufficient 1 2 3 4 5
24 Group plan by finance company 1 2 3 4 5
25 Members have other source of funds 1 2 3 4 5
26 Members claim that money borrowed is 1 2 3 4 5
insufficient
27 Borrowed money to meet family needs 1 2 3 4 5
28 Weekly payment is too much to members 1 2 3 4 5
29 Interest on money borrowed is high 1 2 3 4 5
30 Loan default leads to loss off funds by lbf 1 2 3 4 5