Assessment of loan administration by a micro finance bank

Abstract

The study evaluates loan administration by a Micro finance Bank (I.C.Global MFB) to farmers in the Isoko South local ogovernment area of Delta State, Nigeria. Using structured questionnaire, data were collected from 78 farmers and 5 bank officials using simple random sampling and purposive sampling respectively. Various descriptive and inferential statistics were used to analyze the data. The findings indicated discrepancy between actual amount of loans disbursed to farmers and what farmers desired, most beneficiaries obtain loans less than N200, 000 and the time of loan disbursement affected farming activities. From the regression analysis, occupational activities, farm size, profit level of the farmers, age, gender, interest rates and family size were significant at 5%. It was recommended that overemphasis on
collateral should be reduced, male and female farmers should have equal access to loans and loans should be made available to farmers at the right time and attempt should be made to tackle the problem faced by both farmers and the bank in loan administration.