Abstract
The paper examined the role of revolving loan scheme (Esusu) in the development of rural areas of the country. Investigation was carried out to see how far the 'Esusu' groups have substituted for commercial banks among respondents in Olaoluwa and Iwo Local Government Area ofOsun State of Nigeria. Through there are few commercial and Micro finance banks in the area surveyed, the people have not benefitted much from them due to their formal ways of doing things and their refusal to grant loans to individuals without collated securities. Hence, the people in the locality take solace in the revolving loan scheme organizations around them which has really paid off. Their collections from the 'Esusu' groups have been used meaningfully in their businesses, farming and in sponsoring their wards in schools. It is therefore advised that government should give proper recognition to the 'Esusu' and assist them in order to foster the development of the Nigerian Financial system. The commercial banks should also be compelled to have direct linkage with the 'Esusu' groups so that they can have enough money as loans for their various projects so that the duo can be seen as complementary instead of rivals in their operations. This will go along way to improve economic status of the nation.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
