Microfinance loan is very important for every aspects of economic development in which repayment efficiency is one among many factors hindering efficient utilization of Loan. This study differentiates factors affecting loan repayment efficiency and assesses impact of efficient utilization of loan for the borrowers. Classical and Bayesian logistic regression were used for data analysis. Factor analysis was used to reduce data and to incorporate the major determinants that the efficient utilization of loan have to the borrowers, whereas logistic regression is used to obtained factors affecting loan repayment performance of borrowers and it was extended to the Bayesian frame. Results of the classical binary logistic regression indicate that better repayment efficiency is associated with borrowers: sex, education, number of dependent family member, monthly income, loan size, additional income, motivation of repayment and time. Also by using Bayesian logistic regression age, loan type, using loan for intended purpose and experience are significant in addition to significant predictors in classical one. Furthermore, some recommendations are suggested at final portion of the book.