The effect of interest rate on loan repayment in microfinance banks in nigeria

 

Table Of Contents


Chapter ONE

INTRODUCTION

  • 1.1Introduction
  • 1.2Background of the Study
  • 1.3Problem Statement
  • 1.4Objective of Study
  • 1.5Limitation of Study
  • 1.6Scope of Study
  • 1.7Significance of Study
  • 1.8Structure of the Research
  • 1.9Definition of Terms

Chapter TWO

LITERATURE REVIEW

  • 2.1Overview of Microfinance Banks
  • 2.2Concept of Interest Rate
  • 2.3Importance of Loan Repayment
  • 2.4Factors Influencing Loan Repayment
  • 2.5Role of Interest Rate in Loan Repayment
  • 2.6Microfinance Regulations in Nigeria
  • 2.7Previous Studies on Loan Repayment
  • 2.8Impact of Interest Rate on Microfinance Banks
  • 2.9Strategies for Loan Repayment
  • 2.10Theoretical Framework

Chapter THREE

RESEARCH METHODOLOGY

  • 3.1Research Design
  • 3.2Population and Sampling Techniques
  • 3.3Data Collection Methods
  • 3.4Data Analysis Techniques
  • 3.5Ethical Considerations
  • 3.6Research Instrumentation
  • 3.7Validity and Reliability
  • 3.8Limitations of the Methodology

Chapter FOUR

DATA PRESENTATION AND ANALYSIS

  • 4.1Overview of Data Analysis
  • 4.2Demographic Analysis of Participants
  • 4.3Interest Rate Trends in Microfinance Banks
  • 4.4Loan Repayment Behavior in Microfinance Banks
  • 4.5Factors Affecting Loan Repayment
  • 4.6Relationship between Interest Rate and Loan Repayment
  • 4.7Comparison of Loan Repayment Across Different Demographics
  • 4.8Discussion on Findings

Chapter FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

  • 5.1Summary of Findings
  • 5.2Conclusion
  • 5.3Implications for Microfinance Banks
  • 5.4Recommendations for Policy and Practice
  • 5.5Areas for Future Research

Project Abstract

<p> </p><div><p>The study sought to appraise the effect of interest rate on loan repayment in micro-finance institutions. Lapo Microfinance Bank, a Microfinance institution in Ikot Abasi was used as a case study for the study. The research was conducted using questionnaires and interviews. In all 100 customers and 20 employees were sampled for the research. A systematic random sampling was used for the data collection. The findings of the research revealed that though interest rate plays a major role in loan repayment, other factors such as loan term and the repayment frequency also influence to a large extent the loan repayment. Customers indicated that though lower interest rate would enhance loan repayment, the issue of accessibility and availability of funds was paramount. To enhance loan repayment, the researcher recommends lower interest rate to ease loan repayment burden and loans granted should be amounts that customers can service. Again, Micro-insurance could be established to protect the Institution and customers against any default.</p></div><h3></h3><br> <br><p></p>

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