Loan Recovery Research Articles

AGRICULTURAL PROGRAMME AND NATIONAL DEVELOPMENT IN NIGERIA: ASSESSING THE IMPACT OF THE ANCHOR BORROWERS PROGRAMME

The Anchor Borrower Programme (ABP) was introduced in 2015 by the Federal Government of Nigeria to provide loans for farmers,create jobs, increase agricultural productivity, and create employment to ensure national development. The study employed ordinary least squares regression analysis to examine the program’s impact on national development. The explanatory variables considered include employment in agriculture, food export bill, and food import bill, while the dependent variable is gross domestic product (GDP). The findings revealed that the Food Import Bill, which was 0.2694 (27%) before the program, reduced to 0.0102 (1.02) after the program. Also, the country’s food export bill, which was 0.2884 (28%) before the program, was reduced to (1.7). In contrast, employment in agriculture, which was -0.0534 (-5.3) before the program, further deteriorated to -0.8200 (-82%) after the anchor borrowers’ program. This implies that the anchor borrow program failed to meet the desired expectations. Other findings of the study identified late disbursement of loans to non-farmers, disbursement of funds during off-farming seasons, ineffective loan recovery mechanisms, diversion of loans for non-agricultural purposes, insecurity challenges, and climatic conditions as some of the factors that militate against the efficacy of the program. The paper, therefore, recommends the inclusion of community leaders in identifying agricultural practitioners for loan disbursement and recovery, prompt disbursement of funds, the supply of farm equipment and seedlings rather than cash, and the inclusion of insurance coverage to mitigate the effects of other risks associated with insecurity and climatic trajectories.

Christian Ethical Response to The Challenges of Digital Financial Borrowing in Nigeria

Digital financial borrowing is the money borrowed online through digital mobile applications, platforms or phones that are offered by financial lenders using the Internet. Due to the advancement in financial technology, banking and financial services and operations have been digitalized. The emergence of digital finance has rebranded banking and financial borrowing access and opportunities. People can now borrow money online, digitally and seamlessly. This development is applaudable because it eases traditional banking operations burdens and removes bottlenecks in borrowing and lending to finance business and personal needs. However, the attendant experiences from digital financial borrowing are worrisome and pose challenges to human well-being in developing economies, especially among Christians in Nigeria. Some of the experiences of digital financial borrowers are poor loan repayment, which may be due to high interest, breach of personal data policy and social shaming of defaulted borrowers by lending companies’ employees. The unvirtuous motives and characters of some borrowers, professionally unethical attitudes and loan recovery strategies are responsible for these challenges. This paper gives an overview of digital financial borrowing in Nigeria and discusses digital financial borrowing, which is characterized with features such as instant, automation, remote, consumer loans and short maturity. The paper argues that digital financial borrowing has assisted financial inclusion and contributed to Nigeria’s digital economy, it has however negatively impacted on borrowers’ personal, emotional, mental, marital, business, spiritual and moral well-being due to poor repayment or inability to repay, high interest, and social shaming of customers by digital loan officers. The paper concludes that Christians should act virtuously and ethically according to biblical instructions when dealing in financial borrowing, wisdom, honesty, godliness, discretion, patience and mutual respect are among Christian virtues to display in financial borrowing decisions, actions and relationships. It recommends that churches and church leaders should encourage financial education and literacy that enhance credit understanding and boost Christians’ financial wellness. It also recommends that Chartered Institute of Bankers of Nigeria, with other financial regulatory bodies in Nigeria should regulate the operations of lending companies and enforce acceptable professional work ethics and attitudes of digital lending companies’ employees to enhance friendly relationships with customers.

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.

A comparative analysis of bank group-wise agricultural loan recovery performance in Haryana

A comparative analysis of bank group-wise agricultural loan recovery performance in Haryana

CREDIT RISK ASSESSMENT PRACTICES AND FINANCIAL PERFORMANCE OF MICROFINANCE INSTITUTION IN RWANDA A CASE OF COPEDU PLC

Background: This exploration design, with a case study of COPEDU PLC, aimed to assess the influence of credit risk assessment practices on the financial performance of COPEDU PLC in Rwanda. This exploration design was structured around three specific objects originally, to estimate the influence of customer financial status analysis on the financial performance of COPEDU PLC in Rwanda secondly, to examine the effect of the 5Cs of credit on the financial performance of COPEDU PLC in Rwanda and eventually, to assess the influence of credit risk on the financial performance of COPEDU PLC in Rwanda. Materials and Methods: To achieve the exploration objects, a descriptive and correlation exploration design was used. Data was collected through a combination of both quantitative and qualitative styles, exercising interview attendants and questionnaires. Using tale approach in the slice process, an exploration population of comprising of staff population of 65 at COPEDU PLC headquarters were all be regarded as the sample size. Results: The collected data presented compelling findings grounded on numerical data. specially, the analysis of COPEDU PLCs financial pointers revealed positive comprehensions, with crucial numbers similar as a mean credit score of4.49(SD = 0.75) and a mean debt- to- income rate of4.51(SD = 0.73). These pointers demonstrated a predominant agreement among repliers, with49.23 agreeing on the significance of credit scores and47.69 admitting the significance of the debt- to- income rate. The study also explored the relationship between the 5Cs of Credit and financial performance, revealing specific numbers similar as a mean score of4.35 (SD = 1.15) for collateral and4.42 (SD = 1.13) for capacity. In addition, effective credit risk operation strategies were quantified, with mean probabilities indicating strong agreement (SA) from41.85 of repliers on diversifying the loan portfolio and46.15 on effective loan recovery strategies. The correlation analysis further stressed a robust relationship, with a Pearson Correlation measure of0.894 (p- value = .000), italicizing the statistical significance of the positive association between credit risk assessment practices and the financial performance of microfinance institutions. Conclusion:The exploration study concludes grounding of the findings revealed that COPEDU PLCs credit risk assessment practices significantly impact financial performance, with repliers feting the significanceof crucial financial pointers and the 5Cs of credit. In addition, those effective risk operation strategiesare pivotalfor financial success. still, the study recommends microfinance institutions to upgradecredit riskassessment criteria, train staff on the 5Cs of credit, diversify loan portfolios, ameliorate loan recovery strategies, establish a methodical review process, and invest in technology results to enhance credit risk operationand financial sustainability. Eventually, the study made suggestions for farther exploration on credit risk operation in microfinance institutions, including assayingindividual financial pointers, comparing practices across institutions, assessing risk operation strategies, and tracking long- term goodson financial sustainability and growth. It also suggests comparing variations in credit risk assessment practices and enforcing effective recovery strategies.

Credit Risk Management and Financial Performance of Listed Commercial Banks in Kenya

Commercial banks are concerned with the provision of credit facilities in form of loans and advances to customers. These loans and advances are expected to be repaid by customers in line with the agreement reached with their bankers. Customers’ default in the repayment of loans and advances at the agreed period may lead to bad and doubtful debts and this can affect the financial health, profitability and going concern status of the bank. This study empirically explored the effect of credit risk management on the financial performance of nine listed commercial banks in Kenya for the period, 2018-2022. Credit risk management as the independent variable, was surrogated by two parameters- loans to deposit ratio and Non-performing Loans ratio. Return on Assets was used as a proxy for financial performance of the listed commercial banks in Kenya. The study utilized the information asymmetry theory and the theory of moral hazard and adverse selection. A correlational research design, using secondary data derived from listed commercial banks’ annual audited reports and information from Nairobi Securities Exchange was used in this study. The target population of the study was the nine listed commercial banks in Kenya. A pilot study was carried by performing the normality and multi-collinearity tests from the sample data collected for purposes of assessing the reliability and validity of the model. A census method was adopted in data collection since the target population was manageable. Collected data was analyzed using the Statistical Package for Social Sciences Version 28 where both descriptive and inferential statistical methods were used to describe and depict the results (Mean, Standard Deviation, Correlation, Regression and Analysis of variances). The findings of the study revealed a statistically significant regression effect and indicative of accomplished prediction of financial performance of the listed commercial banks through the F-calculated value which showed that the model was significant. Loan to deposit ratio explained .4% (r =.280) of financial performance of listed commercial banks in Kenya and non-performing loans ratio -36.5% (r=-.681) of financial performance of the listed commercial banks in Kenya. The study will be expected to add to the existing literature in the finance field and more importantly, the credit risk management in commercial banks and other related sectors. The study recommended that; management balance the ratio of financing between equity, debt and customer deposits to extend lending capacity, and generate high earnings volume; desist from holding capital without investing for improved financial achievement; management should maintain a moderate level of Loans and advances to deposit ratio since it is a measure of the banks’ ability to survive withdrawals, because higher rates lead to liquidity problems; give credit-risk management prominence in their strategic policies and finally, due to the continuous deterioration and accumulation of the nonperforming loans, management ought to strengthen loan recovery measures. Keywords: Credit Risk Management, Financial Performance, Listed Banks, Equity Multiplier Ratio, Capital Adequacy Ratio, Nonperforming Loans

Evaluating the Financial Trajectory of PACS in Kerala: A Fifteen-Year Analysis (2008-2023)

This article examines the financial and operational performance of Primary Agricultural Credit Societies (PACS) in Kerala over a 15-year period, focusing on key variables such as the number of societies, membership strength, paid-up share capital, reserves, deposits, working capital, loans issued, loan outstanding, and loan overdue. The analysis highlights significant growth in capital mobilization and deposit mobilization, reflecting the expanding role of PACS in rural financial inclusion. However, the rising trend in loan overdue amounts indicates challenges in loan recovery, necessitating improved credit risk management. The findings suggest that while PACS have shown robust financial growth and stability, strategic interventions are required to address loan recovery issues and sustain their pivotal role in supporting rural communities. The article concludes with recommendations for enhancing credit risk management, member education, financial product innovation, and leveraging technology to ensure the continued success and stability of PACS in Kerala.

Navigating Loan Recovery Process from SMEs: Identifying Critical Challenges for Microfinance Institutions in Tanzania

The purpose of the study is to examine the loan recovery challenges facing Microfinance Institutions (MFIs) and Small and Medium Enterprises (SMEs) in Tanzania. The study took place at Nuru Financial and Business Services (NFBS), the Self-Microfinance Fund (SMF), and Ameic Microcredit Limited (AMC). These are among the microfinance institutions found in Dar es Salaam. The researchers employed a descriptive research design and used NFBS, SMF, and AML as study cases. The study involved 50 respondents, including credit officers, obtained through simple random sampling. In the data collection, the study used semi-structured questionnaires to gather primary data. Also, the study used secondary data from documents available at NFBS, SMF, and AML. Data were analysed using simple descriptive statistics with frequency, percentages, and mean. The study found that loan recovery was a challenging task and faced several obstacles, such as insufficiency of capital to cover recovery costs, the presence of weak internal controls on loan recovery, higher interest rates, and facing an extraordinary event during the loan recovery process. Others are getting into bitter relations with customers during loan recovery due to the incompetence of staff to address loan recovery processes. Finally, the study recommends the government provide financial support or subsidies to microfinance institutions to cover recovery costs, such as grants, low-interest loans, or financial assistance programmes. Establish and enforce regulatory standards for internal controls within microfinance institutions. Implementing policies to regulate interest rates charged by microfinance institutions to ensure fairness and transparency. Establish a legal framework to handle extraordinary events during the loan recovery process. Microfinance institutions should explore partnerships with international development organisations, impact investors, or donor agencies to secure additional funding for loan recovery efforts. Loan officers should be trained in cost-effective recovery strategies, and SMEs should engage in responsible borrowing practices to minimise the risk of default.

Loan Recovery in Maimana Islamic Investment and Finance Cooperative Microfinance Institution

MIIFC is one of the financial institutions operating in financial sector in Faryab province of Afghanistan. One of the most important problems of financial institutions is the recovery of the loans from the borrowers. The purpose of this study is to find the determinants of loan recovery in MIIFC micro finance institution. The statistical population of this research is the borrowers of MIIFC micro finance institution, the sample size is 300 and the stratified random sampling technique was employed. The study used both descriptive and inferential statistic, the quantitative method has been analysed by descriptive statistic with statistical package SPSS (24) and empirical analysis is conducted by using binary logistic regression model to stablish of all explanatory variables. The results show that from these variables, only economic and political situation, number of loans taken, penalty of delay, gender and debt guarantee have a significant relationship with loan repayment. The marital status, education level, age, monthly expenditure, loan utilization, literacy, income-increasing debt, relative location, type of loan, group loan, amount of repayment, repayment period, interest rate on the loan, number of families, loan utilization training and pre-loan purpose have no relationship with loan recovery.

Financial risk contagion based on dynamic multi-layer network between banks and firms

Banks and firms play pivotal roles within the financial system and serve as primary channels for systemic risk contagion. While progress has been made in understanding risk contagion within financial network systems, many studies tend to overlook the intricate interplay of multi-channel risk transmission and the dynamic evolution of network structures. Leveraging complex network theory, we have developed a dynamic multi-layer financial network risk transmission model that encompasses traditional bank–firm lending relationships and incorporates dynamic short-term loans. Through our analysis of various parameters such as loan recovery ratios, cross-shareholding ratios, network structures, short-term loan ratios, and attack strategies, we have made significant observations: In scenarios where both the interbank lending network and cross-shareholding network among firms exhibit random network structure, the financial network presents the highest level of risk. Excessive deviations in network average degrees, either too high or too low, can also heighten network vulnerability. An increase in the recovery ratio of interbank loans and the cross-shareholding ratio among firms corresponds to an escalation in systemic risk. Nodes with higher lending assets, more liquid assets, greater total assets, or higher out-degrees within the network become significant contributors to an elevated network bankruptcy rate when subjected to targeted attacks. Notably, the dynamic short-term loan network significantly amplifies systemic risks, with this amplification effect intensifying as the scale of short-term loans increases. From both macro and micro perspectives, our findings furnish regulatory authorities with novel analytical tools and insights to effectively mitigate and manage systemic risks in the financial sector.

Digital empowerment and innovation in risk control strategies for fishery supply chain finance—a case study of Puhui agriculture and animal husbandry financing guarantee company limited

To examine how to innovate the model of financing a fishery supply chain and develop risk control strategies for seafood and aquaculture enterprises in the digital empowerment scenario, this study conducts field research on a leading agricultural enterprise, New Hope Liuhe Company Limited (hereinafter referred to as ‘New Hope Liuhe’) and its subsidiary Puhui Agriculture and Animal Husbandry Financing Guarantee Company Limited (hereinafter referred to as ‘Agriculture and Animal Husbandry Guarantee Co.’), based on business and financial risks from three phases of loan application, loan use, and loan recovery. The study found that New Hope Liuhe optimizes the division of functions among core enterprises in supply chain finance and develops innovative digital risk control strategies using ‘online big data + offline visits’ to effectively control business and financial risks in fishery supply chain finance. Accordingly, this study suggests that seafood and aquaculture enterprises that implement supply chain finance should innovate the model of supply chain finance from the perspective of differentiation of core enterprise functions and continuously innovate the risk control strategies using digital empowerment and big data in fishery operation.

Examining the Impact of Loan Diversification Policy on the Operational Efficiency of Bank of Kigali and Ecobank Rwanda

To mitigate overall loan portfolio risk, commercial banks often turn to diversification strategies. However, the impact of such diversification remains contested among scholars. This study delved into the analysis of the Loan Diversification Policy's influence on the efficiency of Bank of Kigali and Ecobank Rwanda. Employing a mixed-methods approach— both qualitative and quantitative—the study encompassed 191 employees, with a sample size of 66 managers. Data collection utilized questionnaires and annual reports from the banks. Cronbach’s Alpha measured internal tool consistency, yielding a coefficient of 0.861. Analysis involved descriptive and correlational statistics, executed through Statistical Package for Social Sciences (SPSS), with findings presented via charts and tables. Regarding the first objective, among 66 respondents, reasons for risk in the loan portfolio varied: competition among banks (15.2%), global financial crisis (13.6%), currency fluctuation (9.1%), high lending rates (15.2%), loan recovery issues (13.6%), new regulations (12.1%), government policies (9.1%), and declining interest margins (12.1%). Concerning the second objective, factors influencing bank efficiency included education levels (16.7%), experience (22.7%), participation in education programs (19.7%), professional organization memberships (18.2%), training methods (21.2%), and supervision quality (1.5%). Regarding the third objective, the study revealed a significant correlation (99.3%) between the loan diversification policy and commercial bank efficiency, indicating a strong positive relationship. Keywords: Commercial banks, Loan portfolio, Diversification policy, High correlation, Management of banking institutions

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.

Antecedents of Loan Recovery of Higher Education Loans in Kenya

Purpose: The primary source of funding for higher education in Kenya is the Higher Education Loans Board (HELB). Failure to repay loans by university graduates poses a significant challenge, hindering the availability of financial resources for other deserving students. This lack of loan recovery undermines the sustainability of the education fund, consequently preventing many loan applicants from obtaining the financial support intended to cover their educational expenses. The default rate for student loans in Kenya stands at 40%. The main aim of this research was to examine the factors influencing the recovery of higher education loans in Kenya. Specifically, the study aimed to identify the demographic, economic, and loan repayment factors that impact the recovery of these loans.
 Methodology: The investigation centered on quarterly data spanning a decade (2012 to 2022) obtained from the Higher Education Loans Board. The data collection encompassed loan repayment factors, economic indicators, demographic characteristics, and loan recovery statistics for higher education loans. The study was based on secondary data sourced from quarterly reports of the Higher Education Loans Board spanning the same ten-year period (2012 to 2022). The data was analyzed by use of descriptive and inferential statistics since the secondary data is a time series in nature. A 0.05 significance level (95% confidence interval) was the error variance used. Results were then presented in tables, diagrams and charts.
 Results: Given the economic factors, the findings revealed that inflation rate has a negative (-0.117) and statistically insignificant (p > 0.05) relationship with loan recovery of higher education loans in Kenya. The correlation between the unemployment rate and loan recovery for higher education loans in Kenya was observed to be negative (-0.012) and found to be statistically insignificant (p > 0.05). Similarly, the relationship between economic growth and loan recovery for higher education loans in Kenya exhibited a negative trend (-0.114), which was also statistically insignificant (p > 0.05). Examining demographic factors, the study revealed that income level demonstrated a positive association (1.181) that was statistically significant (p < 0.05) in connection to the recovery of higher education loans in Kenya. On the other hand, the relationship between Educational Level and loan recovery for higher education loans in Kenya was positive (0.482), it was deemed statistically insignificant (p > 0.05). Turning attention to the loan repayment factors, it was uncovered that the lending interest rate displayed a significant negative correlation (-2.761) with the amount of unrecovered loans, which was statistically significant (p < 0.05). In contrast, penalty exhibited a beta coefficient of -0.016, indicating a negative relationship, although this relationship was found to be statistically insignificant (p > 0.05) in terms of its impact on the loan recovery of higher education loans in Kenya.
 Unique contribution to theory, policy and practice: To enhance the effectiveness of loan repayments, the study proposes that HELB should adopt more stringent policies and regulations, aiming to ensure prompt and efficient loan recovery processes. The study recommends HELB alongside the Ministry of Finance and Ministry of Education to develop and promote financial literacy programs that target borrowers to improve their understanding of loan repayment obligations, interest rates, and financial management. The study recommends the strengthening of Financial Aid Programs which can include increasing the availability of grants and scholarships specifically tailored to support students with lower income levels or from marginalized communities

Do Cooperative credit unions reduce or increase poverty in Cameroon?

AbstractPurposeThis study looks at whether credit unions, a type of microfinance, increase or decrease poverty in Cameroon from 2004 Q1 to 2021 Q4.Method/designThe fully modified ordinary least square, dynamic ordinary least square, and conical co‐integration is applied.FindingsThe findings reveal a long‐term association between credit union measures and poverty levels. The results indicate that the number of credit unions, the number of commercial bank branches, and credit to the private sector negatively relate to poverty levels. This implies that as the number of credit unions increases, the poverty level increases as the credit unions tend to exploit the poor population. Outstanding deposits positively impact poverty levels, which imply that members’ deposits alleviate poverty.Research implicationsThe government should refurbish the existing programs to enhance credit unions' activities to focus more on banking the poor population especially in remote areas. The credit unions should increase deposit mobilization from the public to empower individuals and businesses. The government should regulate the number of credit unions being created to limit exploitation. The government should intervene to ensure that credit unions’ policy regarding lending, interest rates, and loan recovery procedures are mutually agreed upon by the parties.Originality/noveltyLimited studies used secondary data focusing on credit unions. The studies give conflicting results: Some studies reveal that microfinance banks positively affect poverty reduction. Some indicate negative effects of microfinance on poverty reduction. Others show that microfinance institutions do not significantly influence poverty reduction. Different opinions exist among depositors and borrowers of credit unions concerning poverty alleviation. Some credit union members hold that credit unions increase poverty, while others argue that credit unions alleviate poverty.

Effect of Credit Management Systems on Loan Recovery Efforts of Microfinance Banks in Akwa Ibom State

This study set out to ascertain the effect of credit management techniques on loan recovery efforts by microfinance banks. To guide the study, 3 objectives specific objectives, 3 research questions and three null hypotheses tested at 0.05 alpha levels were formulated. The study covers all microfinance companies operating in Akwa Ibom State. A descriptive survey research design was employed for the study. The population was 85 operations and marketers in microfinance banks in Akwa Ibom State that have been in existence from 2014 to 2017. The sample size was 60 and the stratified random sampling technique was employed. The research instrument used for the study was a researcher- made questionnaire tagged “Credit Management and Loan Recovery Questionnaire” (CMLRQ). The instrument developed by the researcher was face and content validated by three experts in the Faculty of Social sciences, Akwa Ibom State University. All corrections and inputs were built in to the final version of the instrument. The reliability coefficient of the instrument was determined using Cronbach alpha method after the instrument was trial-tested on 20 respondents who were part of the population but not part of the sample. The result showed reliability co-efficient of 0.78. The data generated was analyzed using regression analysis to answer the research questions and to test the null hypotheses at .05 alpha level. It was concluded that Credit appraisal, credit risk control and collection policy were found to be very important in influencing loan recovery. It was recommended among others that Microfinance banks should ensure that credit appraisal is carried out by the technical people who are experienced and competent credit officer in order to stem out those with intolerable credit risk at the earliest possible opportunity.

Analysis of Overdue Loans from Customers and Factors Affecting Banks' Recovery Strategies

Banks still want to recover part of overdue loans, and choose a corresponding debt collection strategy for each customer based on some factors. The article uses cross-sectional analysis and nonparametric tests to determine the factors that influence banks' recovery of loans. From the analysis, recovery strategies and sex are independent of each other. Loan recovery ratios are related to the cost of debt collection strategies. A binary logistic regression model concludes that gender, age and expected recovery amount did not influence the choice of debt collection strategy.

Modelling the effectiveness of the loan recovery strategy of Indian banks

Modelling the effectiveness of the loan recovery strategy of Indian banks

The impact of climate change on agricultural productivity and agricultural loan recovery; evidence from a developing economy

The impact of climate change on agricultural productivity and agricultural loan recovery; evidence from a developing economy

Optimizing Bank Performance through Loan Recovery in Nigeria: A Comprehensive Analysis of Loan Recovery Strategies of Ecobank Plc.

Banks have significant difficulties in recovering debt, especially when consumers are no longer available following loan disbursement. This study carefully examines the effects of debt management and recovery on bank performance, paying particular attention to the applicability of the credit theory of money. The study's main goals are to thoroughly comprehend the various debt recovery strategies used in Nigeria's banking industry and investigate the connections between outstanding debt, recovered funds, loan client retention, and bank performance. To evaluate the given hypotheses and determine the relationships between these variables, the Chi-Square test was used. The data show that outstanding debt has a considerable influence on bank performance, supporting the credit theory of money. Additionally, a positive correlation between bank performance and loan client retention is discovered and the study finds a link between bank profitability and client relationships. The development of strong, dependable, and good customer connections improves the bank's reputation by increasing client satisfaction, loyalty, and confidence in the bank's dependability as a lender. Credit officers are advised to constantly monitor ongoing debt to avoid payment defaults as part of the study's recommendations. Finally, credit officers should pay frequent visits to borrowers to make sure the money from the loan is being used for what it was intended.