Information Behaviour on Loan Procurement by Textile Traders in Nigeria

Abstract

This study is an exploratory research which examined textile traders’ information behaviour on loan procurement. The study adopted the qualitative approach. Purposive and snowballing techniques were used in selecting 35 traders who were major players in the market and data were collected through face-to-face interviews. Data collected were analysed thematically. Findings showed that information on loans with low interest rates was the most frequent information need and face-to-face communication with information sources was most preferred when seeking   information on loan procurement. The most patronised loan source were the cooperative societies, while microfinance banks were the least.  Challenges to loan procurement included disinformation from loan sources and risk of falling victims to fraudulent transactions. Limited patronage of microfinance institutions indicates the need for the Federal Government of Nigeria to review the activities of these institutions and ensure that they re meeting their objectives especially since they were specifically set up to cater for the financial needs of Micro, Small and Medium Enterprises
(MSMEs).