Borrowersâ€™ repayment performance is about how borrowers behave in repaying thernborrowed fund. In this regard a borrower behavior may fall in one of the three outcomes. 1.rnPaying at expected or earlier time than expected, 2. Paying in arrears and 3. Stop payingrnand become default. These repayment outcomes are determined by internal and externalrnfactors in which the borrowers are living. The objective of the study was to identify factorsrnthat affect repayment performance of borrowers at Development Bank of Ethiopia. The totalrnstudy population 137 was categorised in three strata. The first stratum composed of 51rncases without payment problem, 23 were included in the sample. Similarly in the secondrnstratum of 53 cases with delinquent status 28 were included in the sample and finally fromrnthe 33 cases in NPL category, 19 cases were included. Quantitative research approachrnand explanatory research design were used in the research. Secondary data sources werernused to acquire data pertaining to the individual borrowers, the loan and the project forrnwhich the loan is taken. From the nine independent variables included in the study, fourrnvariables namely loan size, loan tenure, business, experience and nationality werernsignificant in explaining variations in the categorical dependent variables at 1%, 5% andrn10% level of confidence. To improve the repayment performance of the borrowers it isrnimportant to consider loan rescheduling for short and medium loans as long term loanrnshown better repayment status, balance loan release with the project work already executedrnand assess the progress of the project to repay the loan since big loans have poor paymentrnstatus, assigning of loan follow-up activities of projects located in remote location tornnearby districts and finally, the bank should work toward inclusion of significant variablesrnas collateral value, past business experience of the borrower in their loans decision.