Loan Disbursement Research Articles

A Study of Students Loan Procedure in Selected Countries for Effective Implementation of Nigeria Education Loan Fund (NELF)

Nigerian students’ loan board was created in 1972 to provide financial support to Nigerian students in different tertiary institutions. The Nigerian Government reactivated the students loan scheme by passing a bill in 2023. It is therefore, necessary to examine the loan procedures in other countries for better implementation in Nigeria. This work examined the loan procedures from five selected countries. The intention was to extract relevant information on best practices and weaknesses of students’ loan scheme in those countries for effective implementation of the Nigeria Education Loan Fund (NELF). The work was based on secondary data; thus, information was collected from articles in journals, Books, internet and other related publications. The study revealed that most students loan scheme in Africa are faced with several problems such as difficulties to create credible loan board, identifying right loan beneficiaries, sustainability, reliable database, instituting an effective and efficient loan disbursement and loan recovery. The work thus provides suggestions on how to strengthen Nigeria Education Loan fund from information extracted from the study.

How do stock markets in emerging economies respond to World Bank loan approvals?

This paper examines the impact of World Bank loan approvals on equity markets in borrowing countries. We exploit a rich dataset with World Bank loan commitments and daily stock market returns for 47 emerging markets, allowing us to study short run market reactions to news about World Bank programs. These programs fall into three categories: investment projects, structural adjustment loans that tie future macroeconomic reforms to future loan disbursements (prior to FY2006), and development policy loans that reward completed macroeconomic reforms with current loan disbursements (since FY2006). Event study analysis shows positive abnormal stock market returns on the trading day following investment project loan announcements. The effect depends on loan size as well as market characteristics. Structural adjustment loan announcements are followed by negative abnormal returns; development policy loan announcements, in contrast, are considered good news. This suggests that expected macroeconomic implications of policy change in response to loan conditions drive market reactions, and that changes in the conditionality and disbursement structure of World Bank policy lending were successful in improving market reactions to World Bank programs.

Impact of Institutional and Non-institutional Agricultural Credit on Farmers-income and Constraint Analysis in Telangana, India

The present study is to analyse Impact of institutional and non-institutional Agricultural credit on farmers income and Constraint analysis. The study was conducted in 3 districts, 6 mandals, 12 villages and 120 sample farmers were selected for the study. Cost of cultivation (cost concepts) and income measures were used to analyse impact of agricultural credit on farm household income. Garette’s ranking technique was used to analyse the constraints faced by farmers in availing Agricultural credit. The cost of paddy cultivation was ₹78212.78 for institutional farmers and ₹80,726.78 for non-institutional farmers. ₹62050.96 is the Net Return for institutional farmers, whereas ₹54879.66 is for non-institutional farmers. Institutional farmers had a return on investment per rupee of 1.81, while non-institutional farmers had a return of 1.69. The major constraint faced by farmers is delays in loan disbursement. Agricultural credit has a positive impact on farm income. Therefore, the increase in institutional loans has improved the borrower farmers' economies. Timely disbursement of loans, simplifying the application procedure/documentation procedure and educating farmers about agricultural loans are suggested to improve crop loans availing in institutions.

Customer Loyalty Improvement of PT Federal International Finance Danastra Bogor Area

Online loans (pinjol) are increasingly being used by the public, especially during the Covid-19 pandemic where many households are experiencing extraordinary economic pressure. The Financial Services Authority (OJK) provides information regarding the amount of loan disbursements through loan organizing institutions or commonly known as online loan providers (pinjol) in Indonesia touched Rp 20.53 trillion in August 2023. PT Federal International Finance Danastra is an application engaged in multipurpose financing such as working capital, wedding capital, education financing and many other needs to support life. The purpose of the study was to determine how much influence service quality, brand image and customer trust have on customer satisfaction and its impact on customer loyalty at PT. Federal International Finance Danastra, this research uses quantitative analysis methods using SPSS 26 software and the sampling method uses simple random sampling with a sample size of 270 respondents using the Slovin model. Through this research analysis, it is known that the factors of service quality, brand image, consumer trust and consumer satisfaction have a strong and significant influence on consumer loyalty PT. Federal International Finance Danastra.

Determinants of Rice Farmers’ Participation in Anchor Borrowers’ Programme in Southeast, Nigeria

The study investigated the determinants of rice farmers’ participation in Anchor Borrowers’ Programme in South-East Nigeria. Purposive sampling technique was adopted in the selection of states and local government areas in order to capture areas where there are more concentrations of rice farmers and the participating LGAs. Proportionate sampling was adopted in selecting 120 rice farmers’ beneficiaries. Data were collected using structured questionnaires and analysed using frequency, percentage, mean score, standard deviation and ordinary least square regression analysis. Findings show that the beneficiaries rice farmers had high participation (x̄=2.52) in the programme activities with a discriminating index of x̄= 2. Long bureaucratic procedures (x̄=3.29), delay in loan disbursement (x̄=3.39), and high cost of labour (x̄=3.2) insufficient/unavailability of land (x̄=3.1) among others were the most severe constraints faced by beneficiary rice farmers in southeast. Educational level (t =3.015), household size (t = -2681) and access to credit (t = -4.160) were determinants of rice farmers’ level of participation in ABP. The study therefore recommends that there should be timely distribution of inputs among ABP facilitators.

Analyzing the Impact of Industry-Specific Loan Disbursement on Profitability in the Banking Sector of Bangladesh

Analyzing the Impact of Industry-Specific Loan Disbursement on Profitability in the Banking Sector of Bangladesh

PMMY through Public and Private Commercial Banks in Golaghat District, Assam, India: A Comparative Analysis

Microfinance plays a key role in starting new businesses or small businesses. The basic motive of PMMY is to extend the facility of institutional finance to small business entities involved in various trading, manufacturing and service activities. The present paper is an attempt to make a comparative study the role of Public and Private Banks in PMMY in Golaghat district of Assam. The study is based on secondary data. The Study reveals that in Golaghat district, Assam, all types of banks are involved in providing PM MUDRA loans however there is no uniformity in number of accounts and loan disbursement by the different banks. The Private Banks are playing a major role in implementation of PMMY. The RRBs thought government banks needs to accelerate their role in the execution of the scheme.

Challenges of Microfinance and Financial Inclusion for Development Using WASPAS Method

Financial inclusion refers to the process of ensuring that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit, and insurance – delivered in a responsible and sustainable way. The concept aims to eliminate the barriers that exclude people from participating in the financial sector, enhancing their ability to improve their economic conditions. Microfinance is a critical tool within the broader financial inclusion agenda. It involves offering financial services to low-income individuals or those who do not have access to typical banking services. These services include microloans, savings accounts, insurance, and money transfers. Microfinance institutions (MFIs) cater to people who are traditionally excluded from the formal banking sector, helping them to start or expand small businesses, manage risks, and improve their quality of life.One of the primary significances of researching financial inclusion and microfinance is their critical role in promoting economic development. By providing access to financial services, individuals and small businesses can engage in economic activities that contribute to the overall growth of their communities and economies. Microfinance allows entrepreneurs to start or expand small businesses, which can lead to job creation and increased productivity. Understanding the mechanisms and impacts of these financial services helps policymakers and stakeholders design better programs to stimulate economic development, particularly in underserved regions. Alternative taken as Program A, Program B, Program C, Program D, Program E. Evaluation Preference taken as Loan Disbursement Rate (%), Client Outreach (thousands), Loan Default Rate (%), Operational Costs (% of budget). The results Program E Advertising achieved the highest rank, while Search Program B received the lowest rank being attained. “The value of the dataset for Financial Inclusion and Microfinance, according to the Weighted Aggregated Sum Product Assessment Program E Advertising achieves the highest ranking.”

Impact of Microfinance Loan Waiving Programme on the Microfinance Institutions in Assam

The present study was undertaken to analyse the impact of the recent microfinance loan waiving programme of the Assam Government on microfinance institutions (MFIs). It was found that although the loan waiving programme had no impact on the NABARD-sponsored self-help group bank linkage (SBL) programme, it harmed the MFIs. After the implementation of the programme, there was a continuous decline in the number of MFI branches in the state, as well as their client outreach and annual loan disbursement. Further, some of the borrowers stopped the repayment of monthly instalments of their loans taken from the MFIs with the expectation of such programmes in the future.

Review Paper- A Study of Credit Management Policies and Loan Disbursement Operations of Co-operative Bank

This study is conducted to know Credit Policy and Loan Disbursement Operations of Co- operative Bank. Co-operative bank provides variety of credit facilities as per customer’s needs. This facilitates can be for short term or loan term. The loan growth and performance of bank is required level or not it is also assessed in this study. This study confirms that Co- operative bank should maintain a good relation with its customers to increase the profitability. To increase total number of borrowers the bank should provide all the necessary information to their customers and should provide attractive rate of interest. KEYWORDS Banking guide, Credit Term, Interest, Credit Period, Credit Policy, Collateral, Capacity, Margin, Credit Limit

Resisting Social Pressure in the Household Using Mobile Money: Experimental Evidence on Microenterprise Investment in Uganda

I examine whether changing the form of disbursement of a microfinance loan enables female microfinance borrowers to overcome intra-household sharing pressure and grow their businesses. Using a field experiment with 3,000 borrowers in Uganda, I compare the disbursement of a loan as cash to disbursement onto a digital account. After 8 months, women who received their microfinance loan on the digital account had 11 percent higher (US$70) business capital and 15 percent higher (US$18) profits compared to those who received their loan as cash. Impacts were greatest for women who experienced pressure to share money with others in the household at baseline. (JEL C93, D13, G51, J16, O12, O16)

An Exploratory Study on Role of Direct Selling Agent towards Bank and Customer with Specific Reference to Home Loan Services in Punjab

DSA (Direct Selling Agent) that agent who involves in the process of grants home loan from the bank or NBFC to the potential customer. DSA’s job outline is create leads, documentation, cross checking. This study explains role and responsibility of DSA towards bank and customers, awareness of DSA services of the different banks and NBFC among the potential customer, challenges faced by the customer for the approval of home loan and challenges faced by the DSA at the time of process home loan application. In this study the researcher has to implement both primary data and secondary data complete this paper. The primary data deals with raw data collected through questionnaire to the respondents related with their level of disbursement of housing loan. The secondary data consists of reports of existing customers from the banks and NBFC. Pass the housing loan by banks and NBFC provides a boost for the growth and development of house construction industries. Now a time lack of knowledge among individuals related with banking products of all types of banks at one time. In case home loan customer wants to take loan according to their requirements for example lower rate of interest, Type of banks, credit score for transparency and clarity of about loan terms. There are many problems discussed already in previous studies such as different cost of borrowing, collateral security, processing time, proof of income, documentation and margin money. These problems studied by the previous researcher described in the section of the literature review. In view of the above things, it is necessary to conduct a research study to fill these gaps that have been depicted as research problem. The respondents for this research who belong to upper class, middle class or lower-class groups and lived in Patiala city or zones of Patiala. Keywords satisfaction level of customer, Responsibility of Direct selling agent, Challenges faced by DSA

Empowering Women: E-Shakti's Impact on Self-Help Groups Digitization and Financial Inclusion in India

The study assesses the influence of the National Bank for Agricultural and Rural Development’s (NABARD) Project E-Shakti on the digitization of Self-Help Groups (SHGs) and the economic position of women in India. The study evaluates the project's outcomes using data from NABARD's Status of Microfinance in India reports from 2007-08 to 2022-23. The number of SHGs credit linked, savings of SHGs, loans disbursed to them, loans outstanding against them, and non-performing assets (NPA) were the variables considered for the study. Trend analysis and correlation were applied to the available data. For the analysis of the data, the Python algorithm was used. The study's findings indicate that Project E-Shakti intensely boosted the number of districts served and SHGs linked to formal finance, reducing their dependency on informal sources. The project also resulted in a significant increase in loan disbursement to SHGs, indicating enhanced financial sustainability and accessibility. The digitization of SHGs improved women's economic conditions by allowing them to engage in income-generating activities. The programme helped to reduce non-performing assets, signifying its beneficial impact on the financial health of SHGs. Refinance to Non-Banking Financial Companies- Microfinance Institutions (NBFC-MFIs) showed a boost after E-Shakti but then a volatile pattern was observed in the subsequent years. Project E-Shakti was a success in terms of promoting digitization, increasing financial inclusion, and improving women's economic empowerment in SHGs. To maximize the long-term benefit of digitization programmes, the study proposes increasing their scope, investing in digital literacy training, and enhancing monitoring and evaluation procedures.

The impact of fintech peer-to-peer lending and Islamic banks on bank performance during COVID-19

This study delves into the influence of Peer-to-Peer (P2P) Fintech lending on bank performance in Indonesia, with a specific focus on its effects on Islamic banks both before and during the COVID-19 pandemic. Employing a fixed-effects model, unbalanced panel data from 121 banks, including 16 Islamic banks, were analyzed. The findings unveil a significant and positive impact of growth loan disbursement to borrowers from P2P lending on bank performance, particularly in terms of return on assets. Additionally, Islamic Banks exhibit a significant and favorable effect on overall bank performance. Conversely, the joint interaction between P2P lending and Islamic Banks demonstrates a negative and significant influence on Islamic bank performance, suggesting that while P2P lending may benefit conventional banks, it adversely affects Islamic banks. Furthermore, this negative impact is exacerbated during the COVID-19 period. These outcomes underscore the importance of collaboration or strategic alliances between P2P lending platforms and Islamic banks, particularly in the context of the COVID-19 pandemic.

Utilization and Economics of Microfinance Under Self-help Groups: A Micro-Level Analysis from Tripura

"The present study was conducted in Tripura state during 2020-21 to determine the impact of microfinance through SHG. A multistage stratified random sampling technique was used to select the SHGs, i.e. sampling unit and data collected from SHG members. Analysis of collected data using percentages, averages, ranking techniques, etc. and results indicated that vegetable production has the highest B-C ratio followed by the fishery in the small SHGs inferring that fishery and vegetable cultivation were more profitable than other enterprises. Results also showed that the highest amount of credit was utilized in the fishery. It was observed that insufficient amounts of loans, complex procedures of loaning, high cost of inputs, delay in loan disbursement, lack of marketing facilities, and inadequate knowledge of potential funding sources were the major problems in microfinancing through SHGs. Nevertheless, SHGs connected a very large section of poor households with banks, who otherwise remain out of reach from the conventional banking system."

Digitization of Microfinancing Operational Procedures

This study delves into the crucial theme of enhancing income-generating capacity, recognizing its pivotal role in meeting basic human needs and catalyzing prosperity within communities. The motivation behind this research lies in addressing this significant issue through the lens of microfinancing, a viable solution to the identified problem. Focusing on a group of microfinancing units strategically located in North Cotabato, Philippines, this study follows the experiences of personnel within these units. The integration of digitization into their operational procedures aimed to elevate service efficiency, providing a contemporary solution to the challenges faced. The research methodology employed was qualitative, utilizing purposive sampling to gain in-depth insights. Observations, interviews, and informal conversations with key informants, including loan officers, branch managers, and an area monitor, were integral to the inquiry. Both physical and electronic documents played a crucial role in enriching the data collected. Specifically, the study aimed to identify both digitized and non-digitized operational procedures, elucidate the experiences of microfinancing employees concerning these procedures, observe the effects of digitization, and pinpoint immediate improvements resulting from digitization. Key conclusions emerged from the study. Notably, loan processing was identified as the sole procedure yet to undergo digitization. The digitized procedures, encompassing data management, loan disbursement, repayment tracking, and financial reporting, demonstrated notable advantages, characterized by increased speed and reduced errors. Importantly, personnel satisfaction with digitized operational procedures witnessed a positive upturn. Identified improvements that underscore these findings include digitizing loan processing, optimization of loan officers' client-handling capacity, and fortifying institutional data security.

Empowering India's Micro-Entrepreneurs: An Analytical Overview of the Highlights of the MUDRA Scheme

MUDRA scheme was launched in 2015 under Pradhan Mantri MUDRA Yojana with the objectives of supporting micro unit entrepreneurship and financial inclusion in the micro units by providing collateral free loans to non-corporate / non-individual entities. This paper delves into the impact of the established scheme in relation to employment, financing, and business development with a special focus on women and vulnerable persons. However, the scheme has been effective in the goal of credit access and addendum comes with challenges like the increasing NPAs and the sustainability of employment generation. This research analyzes loan disbursements, non-performing assets and the financial sustainability of the program through quantitative and qualitative research methods. It provides policy recommendations to improve the effectiveness of the scheme. Greater emphasis on risk management, financial awareness, and the enhanced application of technology is necessary for the continued success and effectiveness of the MUDRA scheme as a model for the further development of the financial inclusion of the population in India. Some possibilities for further research are: focusing on particular industries and presenting the implementation differences at the regional level.

Analysis of Collaboration Between Rural Banks and Fintech Lending

Fintech Lending or Information Technology-Based Joint Funding Services (LPBBTI) is a form of technological innovation in financial services that provides new alternatives for people to get access to loans in an easy and fast way. Fintech lending provides loans to individuals and businessmen who previously had difficulty obtaining loans from traditional financial institutions. The fintech lending industry enters the same market as banking to serve the community so that they can compete or collaborate with each other. Fintech lending and banks have their own characteristics and advantages so they have the potential to provide added value and reduce risk. The aim of this research is to analyze whether collaboration between Rural Banks (BPR) and fintech lending can be mutually beneficial and an optimal form of collaboration. This research was conducted from a case study of PT Duha Madani Syariah as a fintech lending provider in collaboration with 4 (four) BPRs. The research method used a qualitative approach. Data collected through observation, interviews, documentation, and triangulation techniques. The research results show that the collaboration between BPR and fintech lending is mutually beneficial for the parties because it increases loan disbursement, creates company operational efficiency, and increases company profits. This collaboration is outlined in a cooperation agreement which regulates the scope of mutually beneficial cooperation, and requires support from regulators through policies or implementing instructions to accelerate and improve collaboration between BPR and fintech lending

Effect of shipping company demographic characteristics on cabotage vessel finance and repayment in Nigeria

The research examined the effect of shipping company demographic characteristics on cabotage vessel finance and repayment in Nigeria. The Nigerian Maritime Administration and Safety Agency (NIMASA) have been concerned about the inability of the Ship Acquisition and Ship Building Fund (SASBF) beneficiaries to pay back disbursed loans fully, resulting in the suspension of further disbursement of the fund required for the development of Nigerian local content capacity. The Cabotage Act 2003 was intended for local content development of shipping and maritime logistics capacity. The fund realized through a 2% surcharge on cabotage trade has accrued since inception, but no shipowner has benefited from the CVFF loan. The study relied on both primary and secondary data. Data was collected through a well-structured questionnaire. The study utilized a Statistical Product Service Solution (SPSS v. 23) and a one-sample chi-square test as statistical tools for data analysis. The results reveal that demographic characteristics of shipping companies, such as age, number of vessels, number of employees and total annual revenue, significantly influence CVFF loan repayment. Purpose: To identify and analyze the shipping company demographic characteristics which influence cabotage vessel finance and repayment in Nigeria. The findings suggested practical steps for effective CVFF loan disbursement and reliable loan recovery. Methodology: The study utilized Statistical Product Service Solution (SPSS v. 23) and a one-sample chi-square test as statistical tools for data analysis. Results: The demographic characteristics of a shipping company, such as company age in years, number of employees, share capital, number of vessels and shipyards as well as the age of vessels and shipyards has a significant influence on her Character, Capacity, Credibility, Capital, Conditions, Collateral and Creditworthiness of the organization. Theoretical contribution: The research contributed to exploring, understanding, and applying the probability of credit default theory in shipping finance loan repayment. The demographic internal microeconomic organization Character, Capacity, Credibility, Capital, Conditions, Collateral and Creditworthiness significantly affects the ability of CVFF fund beneficiaries to repay the loans. Practical implications: Prospective borrower indigenous maritime operators should be duly and professionally evaluated to ensure sustainable cash flow and revenue projection during and after granting CVFF loans to guarantee complete repayment.

Entrepreneurship Development: A Crucial Factor for the Sustainability of Nepalese Microfinance Institutions (MFIs)

In this study, the researcher makes the efforts to examine impact of relationship marketing strategies followed The purpose of the paper is to highlight the prospects and challenges of entreprunership development programs of Nepalese microfinance institutions (MFIs) and their sustainability. Descriptive research design has adopted in the study based on review of best practices. Micro entrepruners are those types of members of microfinance who are graduated from microfinance. Nepalese MFIs faced a numbers of challenges for entrepreneurship development (EDs). Finding shows that unskilled human resources, low technical knowledge, financial constraints and poor financial literacy are main constraints of Nepalese MFIs for entrepreneurship development. Conclusion from the study is drawn that entrepreneurship development directly affects viability and sustainability of microfinance institutions (MFIs) through scale of loan disbursement, saving mobilization, profitability for further investment, business development, market analysis and complying with all rules and regulations provided by regulatory authority. The findings of the study might be applicable to the BFIs, MFIs, regulatory authorities, SMEs analyst, entrupruner and planners.