The main aim of this study was to identify factors determining loan repayment performance of projects financed at DBE Bahir Dar district. The study was done using both primary and secondary data from different sources. The study focus on all operational and matured for repayment projects which was the whole population. Out of the 101 total populations only 31 were paid as per repayment schedule while the rest were behind schedule. From total of fourteen variables eight of them were considered as significant. The analytical tools used in the study were loan recovery rate for measuring loan repayment performance, descriptive statistics and tobit regression. The average loan recovery rate of 0.44 indicated that majority of the financed project borrowers were not paid its debt according to the contractual agreement. The tobit model result revealed that making frequent follow-up, business experience in related economic activity before the loan and engaging on economic activities, getting loan in few period, short implementation period, extended loan repayment period, having good infrastructure, disbursing sufficient amount of loan and getting enough foreign currency are significant determinant factors of the loan recovery performance of projects. Other variables such as education level, market stability, type of management, sector, legal form of business and collateral coverage are not statistically significant. Thus, it is recommended that all stakeholders should facilitate infrastructure and reduce delay of implementation, the bank should reduce loan processing period, should extend repayment period, should revised their commodity studies, give priority to customer that having related experience before and should made frequent follow-up.