The purpose of the study is to look into the determinants of microenterprise loanrnrepayment in Addis Ababa particularly to Gulele sUb-city.rnLoan repayment has paramount importance for most developing countries, because lackrnof financial resources is usually regarded as a major obstacle to the development of suchrncountries.rnIn addition good repayment performance is an important measure for the success ofrnmicrofinance institution and microenterprises.rnHence, it is advisable to credit scheme initiatives to make more attention to investigaternfactors that influence loan repayment performance which enables the programs to reachrnmillions of the poor.rnThe objective of the study is to investigate the determinants of microenterprise loanrnrepayment in Addis Ababa with respect to Gulele Sub-city.rnThe study is based on descriptive statistical analysis and identification of therndeterminants of microenterprise loan repayment in beneficiaries by using binomialprobitrnmodel. The data used in descriptive statistical analysis is primary data collected from arnstructured questionnaire from a sample of 220 borrowers who benefited from Gulele sibcityrncredit and saving office .rnThe estimated binomial probit model indicates that, loan amount, household income, agernof borrower, sex of borrowers and role of group leader are negatively related to loanrnrepayment performance. On the contrary, suitability of installment period, supervisoryrnvi sit, number of activities provide source of income, expectation of another loan, housernhold income, availability of other source of income, social ties, frequency of loan, livingrndistance among group members and high school and above high school level of educationrnare positively related to loan repayment performance.rnHence, factors that enhance and hinder loan repayment performance should be consideredrnby Gulele sub-city credit and saving office in designing a more effective loan repaymentrnmechanism for its borrowers.