COMPARATIVE LOAN PERFORMANCE IN BANKS AND MICRO-CREDIT INSTITUTIONS IN ONDO STATE, NIGERIA

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Dr. Tomola Marshal Obamuyi
Dr. Tomola Marshal Obamuyi
1 Adekunle Ajasin University

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COMPARATIVE LOAN PERFORMANCE IN BANKS AND MICRO-CREDIT INSTITUTIONS IN ONDO STATE, NIGERIA Banner
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The paper compares the performance of loans granted to small and medium enterprises by banks with that of micro-credit institutions in Nigeria, using Ondo State as a case study. Descriptive statistics were used to analyse the data collected through primary source. The paper reveals that the average repayment rate of 92.93% for banks was higher than the 34.06% for the micro-credit schemes. That is, the banks performed at much higher levels than microcredit schemes. Based on the findings, it was recommended that there should be stern efforts by the credit institutions in screening of loan applications, monitoring of approved loans and enforcing loan contract. Government should provide the basic infrastructural facilities, which unnecessarily increase the cost of doing business in the country.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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Dr. Tomola Marshal Obamuyi. 2011. \u201cCOMPARATIVE LOAN PERFORMANCE IN BANKS AND MICRO-CREDIT INSTITUTIONS IN ONDO STATE, NIGERIA\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 11 (GJMBR Volume 11 Issue B4): .

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GJMBR Volume 11 Issue B4
Pg. 61- 68
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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March 12, 2011

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English

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The paper compares the performance of loans granted to small and medium enterprises by banks with that of micro-credit institutions in Nigeria, using Ondo State as a case study. Descriptive statistics were used to analyse the data collected through primary source. The paper reveals that the average repayment rate of 92.93% for banks was higher than the 34.06% for the micro-credit schemes. That is, the banks performed at much higher levels than microcredit schemes. Based on the findings, it was recommended that there should be stern efforts by the credit institutions in screening of loan applications, monitoring of approved loans and enforcing loan contract. Government should provide the basic infrastructural facilities, which unnecessarily increase the cost of doing business in the country.

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COMPARATIVE LOAN PERFORMANCE IN BANKS AND MICRO-CREDIT INSTITUTIONS IN ONDO STATE, NIGERIA

Dr. Tomola Marshal Obamuyi
Dr. Tomola Marshal Obamuyi Adekunle Ajasin University

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