Project Topics, List of Project Topics, Research Project Topics

EFFECT OF INTEREST RATE ON LOAN REPAYMENT


2,656 marked this research material reliable.
Call or whatsapp: +2347063298784 or email: info@allprojectmaterials.com
Department: accounting project topics | Type: Project Topics | Project Topics and Materials | List of Project Topics | Research Project Materials | Journals | Thesis | Articles | Online Project Materials | Business Plan | Final year project topic | Format: Ms Word and PDF | Attribute: Documentation Only | Pages: 89 Pages | Chapters: Complete Research work from Chapter 1 to 5; All chapters | Inclusive: Abstract, Preliminary Pages, Table of Contents and Appendices | Cost: ₦ 5,000.00


EFFECT OF INTEREST RATE ON LOAN REPAYMENT

PROJECT TOPICS AND MATERIALS ON EFFECT OF INTEREST RATE ON LOAN REPAYMENT


ABSTRACT

 

The study sought to appraise the effect of interest rate on loan repayment in microfinance institutions. Lapo Micro Finance 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.

 

 

Table of Contents

 

 DECLARATION ................................................................................................................

i

 DEDICATION ..................................................................................................................

iii

 ACKNOWLEDGEMENT ..............................................................................................

iiiv

 ABSTRACT ......................................................................................................................

iv

 TABLE OF CONTENT .....................................................................................................

v

 LIST OF TABLES ............................................................................................................

xi

 LIST OF FIGURES .........................................................................................................

xii

 LIST OF ABBREVIATIONS .........................................................................................

xiii

 

 

 

 CHAPTER ONE............................................................................................................ 1

 

 GENERAL INTRODUCTION.................................................................................... 1

 

 1.0 Background to the Study........................................................................................... 1

 

 1.1 Problem Statement...................................................................................................... 3

 

 1.2 The Objectives of the Study....................................................................................... 3

 

 1.3 Research Questions..................................................................................................... 4

 

 1.4 Significance of the Study........................................................................................... 4

 

 1.5 Scope of the Study..................................................................................................... 5

 

 1.6 Limitation of the Study.............................................................................................. 5

 

 1.7 Organization of the Study.......................................................................................... 6

 

 

 

 CHAPTER TWO........................................................................................................... 7

 

 REVIEW OF RELEVANT LITERATURE.............................................................. 7

 

 2.0 Introduction................................................................................................................ 7

 

vi


 

 2.1 Microfinance/Microcredit: An Overview................................................................... 7

 

 2.2 Overview of the Financial Sector in Ghana.............................................................. 10

 

 2.2.1 Evolution of the Microfinance Sub-Sector in Ghana............................................ 14

 

 2.2.2 Structure and Key Stakeholders of Microfinance in Ghana.................................. 15

 

 2.3 The Structure of the Microfinance Sector................................................................ 17

 

 2.3.1 What are microcredits and how do they work?..................................................... 17

 

 2.3.2 Why are monthly rates in the range of 5 to 7% justifiable?................................... 18

 

 2.3.3 Why clients are willing and able to pay these rates............................................... 18

 

 2.3.4 Why microfinance should be used only for certain types of clients...................... 19

 

 2.4 Loan Default Risk-An Issue in Microfinance/Microcredit....................................... 20

 

 2.5 Microfinance Interest Rate as a Function of Transaction Cost................................ 25

 

 2.6 Determinants of Interest Rates in Microfinance....................................................... 29

 

 2.6.1 Cost of Funds........................................................................................................ 29

 

 2.6.2 Operating Expense................................................................................................. 29

 

 2.6.3 Contingency Reserves (Provision for Bad Debt).................................................. 29

 

 2.6.4 Tax expenses.......................................................................................................... 30

 

 2.6.5 Profits.................................................................................................................... 30

 

 2.6.6 Credit Rating of Client.......................................................................................... 30

 

 2.6.7 Inflation Levels...................................................................................................... 30

 

 2.6.8 Policy Rate............................................................................................................. 30

 

 2.7 Causes of Defaults in Microfinance......................................................................... 31

 

 2.7.1 Lender Side -Weaknesses in Funds Administration.............................................. 31

 

 2.7.2 Borrower Side - Moral Hazard Problem................................................................ 32

 


 

 CHAPTER THREE..................................................................................................... 34

 

METHODOLOGY........................................................................................................ 34

 

3.0      Introduction.......................................................................................................... 34

 

 3.1 Research Methodology............................................................................................. 34

 

 3.1.1 Research Design.................................................................................................... 34

 

 3.1.2 Data sources........................................................................................................... 35

 

3.1.3 Population............................................................................................................... 35

 

 3.1.4 Sample Selection.................................................................................................... 35

 

 3.1.5 Data Collection Instrument................................................................................... 36

 

 3.1.6 Data Editing and Analysis..................................................................................... 37

 

 3.1.7 Limitations to Data Collection.............................................................................. 37

 

 3.2 Profile of Study Area- Tanoah Capital Point Limited.............................................. 38

 

 3.2.1   The   company?s........................................ Vision                                                38

 

 3.2.2 Mission................................................................................................................... 38

 

 3.3 Key Operational Areas............................................................................................. 38

 

 3.4 Institutional Governance, Management Operations and Organisational Structure.. 39

 

 3.4.1 Directors and Management.................................................................................... 39

 

 3.4.2 Organizational Structure........................................................................................ 40

 

 

 

 CHAPTER FOUR........................................................................................................ 41

 

 PRESENTATION AND ANALYSIS OF DATA..................................................... 41

 

 4.0 Introduction.............................................................................................................. 41

 

 4.1 Demographic Background of Respondents (Staff).................................................. 41

 


 4.1.1 Gender of Respondents......................................................................................... 42

 

 4.1.2 Age Distribution of Respondents.......................................................................... 42

 

 4.1.3 Educational Attainment of Respondents.............................................................. 43

 

 4.1.4 Grade/Position of Respondents............................................................................. 44

 

 4.1.5 Number of Years Respondents Have Worked for TCP........................................ 44

 

 4.2 Effect of Interest...................................................................................................... 45

 

 4.2.1 Interest Rate and Loan repayment........................................................................ 45

 

 4.2.2 Interest Rate and Default Rate.............................................................................. 46

 

 4.2.3 Interest Rate and Borrower Relationship.............................................................. 47

 

 4.2.4 Interest Rate Justification...................................................................................... 48

 

 4.3 The Effect of Other Factors on Loan Repayment.................................................... 49

 

 4.4 Policy Measures to Improve Loan Repayment......................................................... 51

 

 4.5 Demographic Background of Respondents (Loan customers)................................. 53

 

 4.5.1 Loan Customers Gender........................................................................................ 53

 

 4.5.2 Age Distribution.................................................................................................... 54

 

4.5.3                                 Size   of   Respondents?...............................................................................Business54

 

4.5.4                                 Size   of   Respondents?...................................................................Working 55Capital

 

 4.6 The Effect of TCP Interest Rate on Repayment of Loan........................................ 56

 

 4.6.1 Low Interest Rate and the Ease of Loan Repayment........................................... 56

 

 4.6.2 Interest Rate and Loan Repayment....................................................................... 56

 

 4.11 Interest Rate and Loan Repayment........................................................................ 57

 

 4.6.3 Interest Rate and Loan Default............................................................................. 57

 

 4.12 Interest Rate, Loan default and Customer Loyalty................................................ 57

 

 4.7 To Determine the Effects of Other Factors on TCP Loan Repayment.................... 57


 

 4.8 Appropriate Policy Measure To Improve the Repayment of the MFI loans............ 59

 

 CHAPTER FIVE......................................................................................................... 62

 

 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS... 62

 

5.0      Introduction.......................................................................................................... 62

 

5.1  Summary of Findings............................................................................................... 62

 

5.1.2  Findings on Appraising The Effect of MFI Interest Rate on Repayment Of Loans62

 

5.1.3  Findings on the Effect of Other Factors on TCP Loan Repayment...................... 63

 

 5.1.4  Findings on Measures Put in Place to Enhance Repayment of the MFI Loans... 63

 

 5.2 Conclusion................................................................................................................ 63

 

 5.3 Recommendations.................................................................................................... 65

 

REFERENCES............................................................................................................... 67

 

 APPENDIX 1................................................................................................................. 70

 

 APPENDIX 2................................................................................................................. 74

 

 

LIST OF TABLES

 

 

 

Table 1 Number of Years in Employment ………………………………………...………...44

 

 

Table 2 Interest Rate and Loan Repayment ……………………………………………..45

 

 

Table 3 Interest Rate and Default Rate …………………………………………………….46

 

 

Table 4 Interest Rate and Borrower Relationship ………………………………………...…46

 

 

Table 5 Interest Rate Justification ………………………………………………………….48

 

 

Table 6 Effect   of   Other   Factors   on   MFI   Loan   Repa

 

 

Table 7 Appropriate Policy Measure to Improve the loan Repayment …………………..51

 

 

Table 8 Age Distribution of Respondents ………………………………………………...53

 

 

Table 9 Size of Business ………………………………………………………………….....54

 

 

Table 10 Size of Working Capital …………………………………………………………..55

 

 

Table 11 Justification for Interest Rate …………………………………………………..56

 

 

Table 12 Interest Rate and Loan Repayment ……………………………………………….57 Table 13 Interest Rate, Loan default and Customer Loyalty …………………………….57

 

Table 14 Other Factors Influencing Loan Repayment …………………………………….59

 

 

Table 15 Policy Measures To Improve Loan Repayment ………………………………….59

 

 


LIST OF FIGURES

 

 

 

Figure 1 Gender of Respondents ………………………………………………………..…..41

 

 

Figure 2 Age distribution of respondents …………………………………………………..42

 

 

Figure 3 Educational Attainments …………………………………………………………..43

 

 

Figure 4 Grade/Position of respondents …………………………………………….............43

 

 

Figure 5 Effect of other factors on MFI loan repayment ……………………………………50

 

 

Figure 6

Appropriate Policy measure that will improve MFIs Loan Repayment …………..52

Figure 7

Gender of Loan Customers ………………………………………………………...53

Figure 8

Size of Respondents?   Working……………………………………………Capital

55

Figure 9

The Effect of other factors on TCP Loan Repayment ……………………............58

 

 

Figure 10 Appropriate Policy Measures that will Improve Loan Repayment of the

 

 

MFI……………………………………………………………………………………….60

 

DOWNLOAD COMPLETE WORK FOR EFFECT OF INTEREST RATE ON LOAN REPAYMENT


Additional Information

  • The Project Material is available for download.
  • The Research material is delivered within 15-30 Minutes.
  • The Material is complete from Preliminary Pages to References.
  • Well Researched and Approved for supervision.
  • Click the download button below to get the complete project material.

Frequently Asked Questions

In-order to give you the best service available online, we have compiled frequently asked questions (FAQ) from our clients so as to answer them and make your visit much more interesting.

We are proudly Nigerians, and we are well aware of fraudulent activities that has been ongoing in the internet. To make it well known to our customers, we are geniune and duely registered with the Corporate Affairs Commission of the republic of Nigeria. Remember, Fraudulent sites can NEVER post bank accounts or contact address which contains personal information. Free chapter One is always given on the site to prove to you that we have the material. If you are unable to view the free chapter 1 send an email to info@researchcub.info with the subject head "FREE CHAPTER 1' plus the topic. You will get a free chapter 1 within an hour. You can also check out what our happy clients have to say.


Students are always advised to use our materials as guide. However, if you have a different case study, you may need to consult one of our professional writers to help you with that. Depending on similarity of the organization/industry you may modify if you wish.


We have professional writers in various disciplines. If you have a fresh topic, just click Hire a Writer or click here to fill the form and one of our writers will contact you shortly.


Yes it is a complete research project. We ensure that our client receives complete project materials which includes chapters 1-5, full references, questionnaires/secondary data, etc.


Depending on how fast your request is acknowledged by us, you will get the complete project material withing 15-30 minutes. However, on a very good day you can still get it within 5 minutes!

What Clients Say

Our Researchers are happy, see what they are saying. Share your own experience with the world.
Be polite and honest, as we seek to expand our business and reach more people. Thank you.

A Research proposal for effect of interest rate on loan repayment:
Reviews: A Review on effect of interest rate on loan repayment, effect, interest, rate project topics, researchcub.info, project topic, list of project topics, research project topics, journals, books, Academic writer.
The study sought to appraise the effect of interest rate on loan repayment in microfinance institutions. Lapo Micro Finance 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... accounting project topics

EFFECT OF INTEREST RATE ON LOAN REPAYMENT

Project Information

Share Links

Download Post (MsWord)
Download Post (PDF)

Search for Project Topics

Project topics in Departments

How much does it cost to hire a writer in Nigeria?

Looking for Professional Approach and Quality Research Services ?

Estimating the cost of research writing in Nigeria: Freelance writers in Nigeria may charge anywhere from ₦5,000 to ₦50,000 or more per project, depending on the factors mentioned earlier. SEO-focused content may be on the higher end of this range due to the additional skills and research involved. For a more accurate estimate, it's recommended to reach out with us, discuss your specific requirements, and request a quote based on the scope of your project. Prices can vary, so getting personalized quotes will help you determine the cost more precisely.

Undergraduate Project Topics, economics project topics, marketing project topics, business administration project topics, engineering project topics, computer science project topics, banking & finance project topics, education project topics, law project topics, sciences project topics, public administration project topics, political science project topics, mathematics project topics, medical science project topics, mass communication project topics, research projects, geology project topics, marketing project topics, agriculture project topics, Browse Thousands of Final Year Project Topics, hire a writer, Research Works and Materials, Project topics and materials in Nigeria, Undergraduate Project Topics, Research Works and Materials, research topics, research project materials, complete project materials, computer science project material, free project topics, complete projects, accounting topics, small business topics, entrepreneurship topics, project materials, Nigerian undergraduate projects, business administration projects, computer science topics and projects, MBA Nigerian project topics, human resources, small businesses, entrepreneurship projects, economics projects, impacts projects, effect projects, university projects, polytechnic projects, investigate projects, political science projects, mass communication projects, project topics, human resource projects, education projects, French topics, project analysis, French projects, project tips, project abstract, project proposals, project bibliography, project reference, project seminar, forex, TSA, treasury single account, currency, naira, devaluation, undergraduate projects, final project research, marketing project topics, statistics project topics, mathematics project topics, statistics, mathematics, research projects, project thesis, labour force theses, NCE, OND, HND, BTECH, BSC, MBA, MSC, English projects, linguistic project topics, Free Project topics and materials in Nigeria, research topics, reseach project materials, computer science project material, free, complete, accounting topics, small business topics, materials, nigeria projects, business administration projects, computer science topics and projects, MBA nigeria project topics, human resources, small business, entrepreneurship projects, economics projects, impact projects, effects projects, training, budgets, ghana, university, polytechnic, browse Free project materials and topics in Nigeria, accounting and finance project materials, business administration project materials and topics, human resources, entrepreneurship, computer science and engineering project materials and topics, Accounting project topics, Accounting project topics and materials, Agricultural Economics Project Topics and Materials, Agricultural Science Projects topics and materials, All Project topics and materials, Architecture Project topics and materials, Aviation project topics and materials, Banking & Finance Projects topics and materials, Biology project and materials, Building project topics and materials, Business Administration & Management Projects topics and materials, Chemical Engineering Project Topics and materials, Civil Engineering Projects topics and materials, Communication & mass communication art project topics and materials, Computer Engineering Project Topics and materials, Computer Science Projects topics and materials, Criminology project topics and materials, Economics Research Projects topics and materials, Education Project Topics and Materials, Electrical Engineering Projects and materials, English Education & English Language Project topics and materials, Food Science project topics and materials, Geology Project Topics and materials, Guidance Counseling Project Topics and materials, History project topics and materials, Home Economics Project Topics and Materials, Human Resource Projects topics and Materials, Industrial Chemistry Projects topics and materials, Insurance Projects topics and materials, Law project topics and materials, Library and information science project topics and materials, Marine and Transport management project topics and materials, Marketing Projects topics and materials, Mathematics project topics and materials, Medical Sciences Project Topics and materials, Microbiology project topics and materials, Nursing and Midwifery project topics, Nursing and Midwifery project topics and materials, Optometry or nursing project topics and materials, Petroleum Engineering project topics and materials, Pharmacy project topics and materials, Philosophy project topics and materials, Photography project topics and materials, Physical and Health Education project topics and materials, Physiology project topics and materials, Political science project topics and materials, Project topics and materials, Psychology project topics and materials, Random project, Religious and Cultural Studies Project Topics and Materials, Sociology and Anthropology Project topics and materials, Sociology Project Topics and materials, Tourism project topics and materials, Vocational education project topics and materials. Project Topics: List of Project Topics | effect of interest rate on loan repayment | effect | interest | rate Project Topics | researchcub.info