COMPARATIVE LOAN PERFORMANCE IN BANKS AND MICRO-CREDIT INSTITUTIONS IN ONDO STATE, NIGERIA
Keywords:
Bank Loans, credit scheme, loan performance, Agency theory
Abstract
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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2011-03-12
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