Loan Facilities Research Articles

Investigating the role of banks in promoting women‐owned micro and small businesses: Empirical evidence from an emerging economy

AbstractWomen entrepreneurs of Bangladesh face strict terms and conditions, high interest rate, and collateral requirements while requesting access to bank finance. This paper investigates the role of banks in promoting micro and small businesses owned by women in Bangladesh in terms of access to bank finance and collateral requirement. Bangladeshi women entrepreneurs were chosen as there are surge in women entrepreneurs in the nation. The study used a close‐ended questionnaire to collect data based on stratified sampling and data health was ensured using the Harman's single factor indicating no presence of common method bias. The sample consists of 60 respondents of pilot study and 150 respondents surveyed by trained enumerators resulting a final sample size of 210. The data were collected based on primary sources from the entire Bangladesh represented by the eight divisions of the country namely Dhaka, Barishal, Chittagong, Khulna, Mymensingh, Rajshahi, Rangpur, and Sylhet. The data were analyzed based on the binary logistic regression model using the IBM SPSS Statistics. Empirical results indicate that women entrepreneurs can be granted bank finance only by the private commercial banks without pledging collateralized assets according to the rules of the central bank of Bangladesh provided they offer personal guarantee, social security and group guarantee and if they default on the loans, security will be used for loan repayment, and they will be deprived of further loan facilities. The findings of the study will help add value to the current literatures and the outcomes will be helpful to the concerned parties.

INVESTING IN GIRLS FUTURE: AN ANALYSIS OF LEVEL OF AWARENESS OF SUKANYA SAMRIDDHI YOJANA SCHEME

A government-backed savings program called Sukanya Samriddhi Yojana (SSY) aims to improve the financial stability of Indian female children. Using an Analysis of Variance (ANOVA), this study investigates the association between income levels and awareness of the Sukanya Samriddhi Yojana. 150 investors living in the Alappuzha District provided the data. To determine the impact of revenue on the degree of SSY Account awareness, six parameters based on awareness are chosen. Interest rate, tax benefits, withdrawals, account transfers, internet services, and loan facilities are the six parameters that were chosen for this investigation. The results of the ANOVA test showed that income levels had no bearing on awareness levels regarding interest rates and online services, but they did in the cases of tax benefits, withdrawals, and transfers. The research highlights the necessity of focused awareness initiatives to close the knowledge gap and guarantee that everyone may benefit equally from the Sukanya Samriddhi Yojana. Policymakers can improve the scheme's efficacy and reach by tackling these discrepancies, which will ultimately help financially empower female children across all socioeconomic classes.

A STUDY ON THE RELATIONSHIP BETWEEN LABOUR WELFARE SCHEMES AND ITS IMPACT ON JOB SATISFACTION AMONG WORKERS IN TITAN WATCH COMPANY, HOSUR – A CASE STUDY

In an industrial economy, the workers are subject to periodic unemployment due to cyclical fluctuations in business, sickness, industrial accidents and old age. In India it has the obligation from the Government side to help the labourers and provide them security and adopt labour welfare measures in the form of various schemes such as Workmen’s Compensation Act, Employees’ State Insurance Act, Finances and Contributions, Sickness benefit, Medical benefit, Maternity benefit, Disablement benefit, Dependents’ benefit, Employees’ Provident Fund and Bonus schemes, Gratuity Scheme and Employees’ Pension Scheme. All these welfare schemes have followed and adopted in industries for the welfare of labourers both men and women. So, the present study is done to understand the various labour welfare facilities such as statutory and non-statutory welfare facilities provided by the company to labourers / workers namely TITAN watch company, Hosur, and its impact on job satisfaction. This study shows the positive relation between welfare facilities such as medical facilities, crèche, canteen facilities, recreation, toilet facilities, rest room facilities, reading room, loan facilities for their children’s education, marriage, housing loan, insurance coverage etc. and job satisfaction. Job satisfaction is very important to know the level of contribution to workers towards his / her work and how welfare facilities affect. Labour welfare schemes are provided to strengthen man power in both physically and mentally. Thus, these facilities are more effective in improving the performance and building the morale of every worker working in industries, in order to increase the productivity of labourers.

The bright side of bank lobbying: Evidence from the corporate loan market

Bank lobbying has a bitter taste in most forums, ringing the bell of preferential treatment of big banks from governments and regulators. Using corporate loan facilities and hand-matched information on bank lobbying from 1999 to 2017, we show that lobbying banks increase their borrowers' overall performance. This positive effect is stronger for opaque and credit-constrained borrowers, when the lobbying lender possesses valuable information on the borrower, and for borrowers with strong corporate governance. Our findings are consistent with the theory positing that lobbying can provide access to valuable lender-borrower information, resulting in improved efficiency in large firms' corporate financing.

Serving the unserved: a market segmentation, price discrimination based customer-centeric approach to home loans in india

The housing finance sector in India has witnessed remarkable growth in recent years, yet a significant portion of the population remains excluded from accessing formal home loan facilities. This master thesis report aims to address this gap by proposing a customer-centric approach to home loans, utilizing market segmentation and price discrimination strategies to serve the unserved segment of the market effectively. The study begins by identifying the need to bridge the gap in home loan accessibility and explores the reasons behind the exclusion of certain demographic groups. Through a comprehensive literature review, the report examines existing research on home loans, market segmentation, price discrimination, and customer-centric approaches in the financial services industry. The research methodology employed in this study utilizes a mixed-methods approach, combining qualitative and quantitative techniques to gather insights into the preferences, challenges, and perceptions of potential home loan borrowers. A carefully designed sampling plan ensures the representativeness and reliability of the data collected. Data analysis reveals patterns and trends within the home loan market, shedding light on the effectiveness of different segmentation and pricing strategies in reaching the unserved population. The questionnaire used for data collection is provided in the report, along with a discussion of the limitations, challenges, and barriers encountered during the research process. In conclusion, the report summarizes key findings and recommends strategies for policymakers, financial institutions, and other stakeholders to enhance inclusivity and efficiency in the home loan sector. By adopting a customer-centric approach and leveraging market segmentation and price discrimination techniques, the goal of serving the unserved can be achieved, contributing to greater financial inclusion and societal welfare.

Analysis of Smoked Fish Marketing in Selected Local Government Area of Kebbi State

The study examined the marketing of smoked fish in a few Kebbi State local government areas. The study's main goal was to determine how profitable it was to sell smoked fish in a particular local government area in the state of Kebbi. Using a straightforward random sampling approach, information was gathered from 120 marketers of smoked fish. A well-structured questionnaire was used to gather the information. Both descriptive and inferential statistics were used in the analysis of the gathered data. According to the results, the majority of fish marketers (41.7%) fell between the ages of 21 and 30. Male respondents made up the majority of the sample (65%), while married respondents made up around 91.7%) and those without access to formal education made up about 51.7% of the sample. Further, the result revealed that (55%) of the respondents in the study area had 21-30 years of marketing experience. Additionally, the results show that small-scale businesses account for the majority (54.2%) of smoked fish marketers. According to the study, the distribution of smoked fish in a few local government areas (Bagudo, Bunza, and Yauri) is a decentralized system that allows customers to buy fish straight from the supplier. Notwithstanding the difficulties experienced, it was determined that the marketing of smoked fish in a few local government areas of Kebbi State is profitable. Recommendations were made as follows: In order to minimize the high cost of transportation caused by rising fuel prices and poor roads, financing the sale of smoked fish requires access to fast and reasonably priced loan facilities.

Factors Contributing to Poverty among Artisanal Fisherfolk of in Ahoada West Local Government Area of Rivers State, Nigeria

This study investigated factors contributing to poverty among artisanal fisherfolk in Ahoada Local Government Area of Rivers State, Nigeria. By exploring the livelihoods of artisanal fisherfolk, this paper analyzed different aspects of poverty and identify factors that contribute to poverty in these communities. This descriptive study was guided by two research objectives and questions. The population of study consists of 520 members of 3 fisherfolks cooperative society in Rivers State, out of which 240 members was randomly sampled. The research instrument used for the study was a structured 24 item questionnaire designed on a modified 4-poin Liker scale format. The findings of the study reveal that lack of access to loan facilities, reduction in catch and socio-economic factors contributed to poverty among fisherfolk in Rivers State. This study came to the conclusion that poverty is pervasive in coastal communities in Rivers State because the majority of fishermen who live and work there have daily challenges that exacerbate rather than reduce their economic condition. Based on this the paper recommended that in order to give fishermen access to loans and free themselves from the shackles of payday lenders, the government of Rivers State urgently needs to expand the establishment of microfinance banks to coastal communities. Additionally, fishermen need to be properly educated on the importance of maintaining clean waterways and the proper application of government regulations governing effluent discharge on water bodies.

Evaluation of the challenges facing small and medium-scale building contractors in Nigeria

In this study, the challenges associated with the operations of small and mediumscale building contractors in Nigeria were considered. Globally, the construction industry is faced with several notable challenges in terms of technological advancement, development of operational processes and mechanisms, and keeping up to date with the prevailing business trends. The main objective of this study is to examine the problems that are facing small and medium-scale building contractors in Nigeria. The study employed a questionnaire survey as a data collection instrument. A total of 317 closed-ended questionnaires were administered to small and medium-sized contractors in Akure Nigeria. However, only one hundred and seventy-two (172) returned questionnaires were found valid for analysis. The data was analyzed using the simple descriptive statistical method of percentage and weighted mean score (WMS). Findings revealed that inadequate startup capital for contractors was the major problem facing small and medium-scale building contractors in the study area given its highest mean score of 4.0697. In light of the above, the study recommends that the government being the major player in the building industry should endeavour to initiate, create, and implement policies such as grants and aids for small and medium-sized contractors to enable them to remain in business no matter the state of the economy. It is concluded that the ineffectiveness of the small and medium-sized contractors in the study area is influenced by the un-availability of startup capital, lack of political will in implementing policies that assist small and medium-sized contractors, delayed payment, high-interest rates on loan facilities, and difficulty in getting guarantors for the loan facility.

In-Depth Assessment of Key Factors Affecting Coffee Production in Tanzania

Coffee has been among the traditional cash crops and one of the main contributors to foreign earnings in Tanzania. Consequently, earnings from its exports have remained low due to various production challenges which in turn affects export growth. These challenges have never been properly and intensively recognized for better decision-making. Therefore, this study was set to provide an in-depth assessment and understanding of key factors affecting coffee production in Tanzania.The study used simple random sampling to collect information from 364 respondents in four highly coffee-growing districts in Ruvuma, Mbeya, and Songwe regions. Qualitative and quantitative data were collected through structured questionnaires from small-scale farmers. Data were then analyzed by using a statistical Package for Social Sciences (SPSS) and Excel. From the findings, poor agronomic practices such as inadequate application of fertilizer, poor pesticides and disease control, and aged low-yield coffee trees were found to be the main factors that strongly explain the relationship with low coffee production output due to their significant results. Furthermore, using regression the other variables found to significantly affect coffee production output level were limited access to finance and inadequate extension services. Based on the findings, sustainability of the coffee sector development, intensive government intervention is needed by putting more priority on training farmers best agronomic practices in the right way. This way, small farmers can be aware of the importance of the application of required agronomic practices as a key factor in the scale-up of productivity and production output. The Bank of Tanzania can also efficiently address the challenge of small-scale farmers in obtaining soft loans at a reasonable cost from financial institutions by creating an enabling environment. This should include the provision of a special loan facility to commercial banks connected with conditions to beneficial banks to lend to farmers at an indicative rate that can be affordable to small-scale coffee growers. These findings will inform policymakers and coffee stakeholders in the coffee value chain on the best actions and decision-making to enhance the sector's performance.

Banking Relationships and Financing Decisions of REITs

Banking relationships are key factors that influence the financing decisions of real estate investment trusts (REITs) which are mandated to hold highly specific assets. Using a comprehensive data set of loan facilities by REITs across different markets, this paper empirically tests the effect of REIT-bank relationships on credit costs and other non-price credit terms. We find that REITs with past banking relationships enjoy favorable loan terms that include lower loan rates, higher loan amount, and a less stringent collateral requirement. These favorable terms were kept by relationship banks during the global financial crisis from 2007 to 2009.

Kewenangan Pembentukan Kantor Dewan Perwakilan Daerah Repbulik Indonesia (DPD RI) Di Daerah Pemilihannya

Introduction: 4 DPD-RI offices in their constituencies have only become definitive or owned by DPD RI but 30 other provinces are still using building loan facilities or leasing facilities owned by the Regional Government even though Law No. 17 of 2014 concerning MD3 article 252 describes the DPD RI office must be in the capital city province. Thus it is necessary to have procedures in establishing DPD offices in their constituencies.Purposes of the Research: This writing aims to describe the form of accountability for establishing DPD RI offices in each constituenc.Methods of the Research: The type of research used is normative, which is focused on providing explanations that explain a particular category. Approach the problem of the statute approach (statute approach) and the conceptual approach (conceptual approach). The collection of legal materials through primary legal materials is then free from secondary legal materials. Results of the Research: The procedure for establishing the RI DPD Office can be carried out through the following stages: a) Discussion of the RI DPD office; b) Discussion of Complementary Tools by PURT; c) Submission of the draft to DPD RI; d) Discussion of the development plan by Commission III of the DPR RI; e) Ratification of the DPD RI office construction plan; f) Discussion on the urgency of implementing development by PURT Complementary Tools; g) Cooperation with the Regional Government; h) Construction is underway.

Indigenous Preservation Practices and Shelf Life of Stored Yams in Benue State, Nigeria: Implication for Post-Harvest Management and Food Security

Several empirical studies have been conducted on the relationship between indigenous practices and yam tuber preservation. However, there is a lack of empirical evidence regarding the extent of effectiveness of the existing indigenous preservation practices in reducing yam postharvest losses with regard to prolonging the shelf life, which underscores an existing gap in knowledge. The purpose of this study is to examine the extent of effectiveness of existing indigenous preservation practices in prolonging the shelf life of stored yam tubers in Benue State, Nigeria, using a cross-sectional survey design based on a proportional sampling technique involving 255 respondents. The result of the chi-square test shows the probability value of 0.000<0.05; hence, the study rejected the null hypothesis. A symmetric Phi value of 0.635 was obtained, showing a positive association between the variables. Thus, application of the existing indigenous yam preservation practices led to the overall improvement in the shelf life of stored yams by 34%. The study recommends that government and nongovernmental organizations should provide both financial and technical assistance to rural yam farming families, in the form of loan facilities. Yam farmers should also form cooperative societies in order to borrow more funds from financial institutions. This will boost the expansion of storehouses to accommodate the increasing quantity of yam tubers harvested, provide good ventilation in stores, and enhance free traffic during the removal of sprout development in storehouses to avert yam tuber postharvest losses and prolong the shelf life of the stored yam tubers in the study area.

Tiv entrepreneurs in road transport business: engaging the patterns and trends, 1960’s-2015

ABSTRACT The paper examines the evolution and development of the road transport business in Tivland from the 1960s to 2015. Tivland is located in Benue State, central-Nigeria. The contention is that the advent of British colonial rule led to the construction and expansion of footpaths into motorable roads in Tivland. Tiv entrepreneurs took this advantage by engaging in the transport business. Therefore, transport entrepreneurship was a watershed in the economic development of Tivland. The paper made use of both primary and secondary data, and its approach is descriptive, narrative, and analytic. The paper finds out that the road transport business has contributed to the socio-economic development of Tivland. However, the transport business among the Tiv was beleaguered with some daunting challenges: bad roads, lack of finance, lack of loan facility, mismanagement, stiff competition from outsiders, lack of insurance cover, and extortion of drivers by security personnel. As a way out of these challenges, the study suggests that roads should be repaired and new ones open up to reach areas of production in Tivland. There is also a need to make loan facilities available to aspiring Tiv entrepreneurs to support their businesses.

Demographic Variables on Behavioral Factors and Over-Indebtedness: Insights from a Developing Nation

Household over-indebtedness is a pressing global concern with severe socioeconomic consequences. While existing research highlights macroeconomic, demographic, and behavioral factors as key drivers of over-indebtedness, behavioral aspects have received comparatively less attention. This study aims to scrutinize the impact of behavioral factors on over-indebtedness while examining how demographic factors moderate this relationship. Utilizing a positivist research philosophy and deductive approach, the study develops a novel conceptual model incorporating four behavioral and five demographic factors as causes of over-indebtedness. Data collection was conducted through a structured questionnaire utilizing a survey research approach, employing a stratified random sample that accurately represents the broader public population, specifically individuals with at least one loan acquired from the banking sector. Quantitative data collected in 2023, through a cross-sectional approach, was analyzed using structural equation modeling in SPSS AMOS 23. Findings reveal that financial literacy, risk perception, and emotions negatively correlate with over-indebtedness, while materialism demonstrates a less significant yet positive association. Additionally, demographic factors such as age, gender, income, and education moderate the relationship between behavioral factors and over-indebtedness. Religion, however, does not alter this relationship. These findings align with empirical evidence and are supported by projection bias theory and behavioral life cycle theory. The insights from this study offer valuable implications for financial institutions in devising credit risk management policies. Moreover, governments and central banks can leverage these findings when formulating macroeconomic policies of loan facilities.

An Explainable AI framework for credit evaluation and analysis

Loan Facility is a profitable venture for the banking industry and can render great financial support to the beneficiary. The Global banking systems with secured private cloud are making the service reachable around the world around the clock. Loan acceptance and disbursal are governed by the protocol of the banks with the highest degree of privacy and integrity. As per the report of Experian, the loan acceptance rate of the banks has been reduced to 61%–70%, and it is further reduced to 50% post-pandemic since there is a huge financial setback and a higher rate of defaulters. The banks are not in a position to explain the reasoning behind the rejection since the rejection further diminishes the customers’ credit scores. With the parallel improvements in Industry 5.0, futuristic banking could evolve around Non Fungible Tokens (NFT) integrated Explainable AI (XAI) framework which can interact with the customer through the human-machine interface in the meta-verse. For such a kind of system, the proposed work could be a driving application which provides explanations for the loan rejection, with the Random Forest integrated XAI framework that provides the reasons for acceptance and rejection of the loan. The proposed Random Forest-based approach rendered the highest accuracy, sensitivity and specificity of 0.998, 0.998, and 0.997, respectively. The LIME and SHAPELY Explainers provide explanations with local and global surrogates of various parameters on the features.

Knowledge Assessment of Beneficiary Farmers of Technical Service Centres (TSCs) about Recommended Technologies of Sericulture in Karnataka State of India

Sericulture in Karnataka is in the process of modernization in many phases through new demand driven extension approach called Technical Service Centres (TSCs) located at the grass-root level (Hobli and Taluka level). These centres are mainly involved in the dissemination of the technologies developed by the Research Institutes and also in supply of mulberry cuttings/saplings, monitoring mulberry cultivation, silkworm rearing and providing information about loan facilities and subsidy schemes. There is a need to study the attitude of sericulture beneficiary farmers towards activities of TSCs. The study was conducted during 2018-20 in the Karnataka state which contribute 35 per cent of silk production in India. An ex-post facto research design was used or the study. Knowledge test was constructed to measure the knowledge of sericulture farmers on recommended sericulture technologies. The Ramanagara and Mandya districts were selected because these district have highest number of TSCs in Bangalore and Mysore division respectively. Mandya, Malavalli and K.R Pet taluks from Mandya district as well as Ramanagara, Channapatna and Kanakapura taluks from Ramanagara district were selected for the study with four TSCs from each taluk. Totally, 24 TSCs were selected for the study. Ten sericulture farmers under each TSC, collectively 240, were selected by using random sampling method. The study highlighted that more than half (52.50%) and more than one third (36.25%) of the sericulture farmers had medium and high knowledge on recommended technologies of sericulture respectively. Only just more than one tenth (11.25%) of the sericulture farmers had low knowledge on recommended technologies of sericulture. The probable reason might be due to fact that sericulture farmers were regularly consulting from officials of grainage centres, TSC extension functionaries, input dealers and peer group about the information on latest sericulture technologies.

Livelihood Diversification among Rural Farmworker Households in Edo State, Nigeria

The study examined livelihood diversification among rural farmworker households in Edo State. Ninety-six respondents provided data through the questionnaires which were analysed using percentages, the mean, chi-square, and the Cochran test. A sizable portion of respondents (24.0%) fell between the ages of 24 and 35, with a mean age of 50, and were predominately male (83.3%). Farming (100.0%) and small-scale commerce (78.0%) predominate among the livelihood possibilities for farmworker households, with a high percentage having a senior secondary school diploma (48.0%t). Lack of access to credit was the biggest obstacle to diversifying sources of income ( = 83.0). Rural farmworker households diversified their sources of income. The findings advocate for the involvement of relevant organisations in facilitating credit and loan facilities for smallholder farmworkers to boost their output and income, which may impact their degree of diversification and raise their standard of living.
 

The impact of the green economy on the sustainable development of Kazakhstan

The authors in this study noted that, the world economy is faced with the realities of depletion of natural resources, water, and environmental pollution. The global course around the world today is the “green economy”, which provides not only a careful attitude to nature, but also the introduction of innovative technologies. In addition to the high level of physical and moral depreciation of equipment, which worsens the issue of irrational consumption of raw materials and energy, there is also a lack of innovation due to low demand and restricted funding. The current implementation of the Invest EU investment program aims to attract a minimum of 650 billion rubles between 2021 and 2027 in long-term public and private investments to support the sustainable revitalization of the European economy. A significant portion, 30%, of these funds are earmarked for climate-related projects. This presents a unique chance for funding innovative ventures that carry higher financial risks, with the added security of a $26.2 billion euro EU budget guarantee. The Public Sector Loan Facility offers a unique financing option, serving as a credit line to enhance public funding in specific areas. This facility, offered by the European Investment Bank, combines grants from the European Union with loans to support projects in targeted regions. It also extends assistance to projects that may not generate profits. The Center for Green Finance was founded in Kazakhstan in 2018 at the Astana International Financial Center with the aim of advancing and advocating for environmentallyfriendly financial practices.

Influence of Mobile Loan Structuring on Growth of Small and Micro Enterprises in Nairobi City County, Kenya

Background of the study: Small and Miсrо enterprises are an essential fragment of many countries. In Kenya, small and micro-enterprise area accounts for more than fifty percent of new opportunities created. However, the deficiency of loans is а key inhibition to the growth of the small and micro-enterprise sector.Restrained ассess to proper finance because of inadequate and lack of competence to provide financial services is a constraint to the advancement and expansion of the sector. Objective of the study: The research sought to establish the impact of mobile loan structuring on the growth of small and micro enterprises in Nairobi City Соunty. The research was steered by; the Technology ассeрtаnсe model, credit rationing theory, and financial growth life сyсle theory. Research Methodology: The study utilized а descriptive research design and questionnaires were used as the primary research tool.The target рорulаtiоn was a total of 1539 SMEs respondents’ орerаting within Nairobi Сentrаl Business District, hence obtaining а sample of 317 SMEs as resроndents. The survey employed a stratified sampling technique where the рорulаtiоn were split into seven strata depending on the sector the firm is орerаting in. The sample population units were subsequently chosen using simple random sampling. Results and findings: The study findings revealed that mobile loan structuring has a negative and significant effect on the growth of SMEs (β= -0.178; p<0.05). The study concluded that the size of loans advanced affects how the needs of the business are met, and most importantly, favorable loan facility processing fees also affects transaction costs. The study recommends that clients should be provided with a fair repayment plan that allows them to pay the loan in a more structured manner.

Introduction Of MSME (Micro, Small and Medium Enterprises) Products to Increase Selling Competitiveness at The Level 3 Seuhaaah Festival Event At Paris Van Java Mall

MSMEs (micro, small and medium enterprises) are the main drivers of the Indonesian economy which are now excellent in increasing employment The government in various sectors also helps the development of MSMEs, one of which is by providing KUR (People's Business Credit) loan facilities intended for MSMEs. Now MSMEs are very easy to recognize with various technological advances, one of which is social media which provides one way of promotion attractively. Wikaorganizer invites MSMEs to participate in celebrating the Level 3 Sehaaah Festival which will be held in Paris Van Java in collaboration with BJB held a flash sale in order to celebrate the right one on August 17 and gave vouchers for Rp.17,-. The Community Service program aims to provide education and invite MSMEs to introduce their products to increase their selling competitiveness during the Level 3 Seuhaaah Festival at Paris Van Java Mall. MSME owners were given the opportunity to participate in the event and try to compete with other business units in selling their products. During the Seuhaaah Level 3 Festival, MSMEs could attract consumer attention through creative and attractive product exhibitions. In this case, effective promotion and strong branding are key factors. In addition, participating in events like this allows MSMEs to build a wider business network, including with potential buyers and business partners. In this program, MSMEs can experience real benefits in increasing their sales competitiveness through participation in the Level 3 Seuhaaah Festival event. Therefore, increasing support and promotion of similar events can be an effective strategy in supporting the growth of MSMEs and the local economy as a whole.