ABSTRACT
The objective of this study is to evaluate agricultural loan disbursement and
repayment in the Nigeria commercial banks. In particular it is intended to
examine the adequacy and repayment in commercial banks. In carrying out this
research both. Secondary data were collected through the use of quantitative
and qualitative analysis of data and other information which were administered to
the agric department of afribank Nigeria plc.
The result of the analysis should that agricultural loans has not been
effectively disbursed by the Nigeria commercial banks also the beneficiaries of
such loan has not been repaying them promptly.
TABLE OF CONTENT
CHAPTER
ONE
INTRODUCTION
1.1)
Background of the study
1.2)
Statement of the problem
1.3)
Purpose / objective of the study
1.4)
Significance of the study
1.5)
Limitation of the study
CHAPER TWO
Review of related
literature
CHAPTER THREE
Research
design and methodology.
3.1)
sources of data ( secondary data only )
3.2)
location of the study
3.3)
methods of data collection literature work only
CHAPER FOUR
Findings
CHAPTER FIVE
Recommendation
and conclusion
CHAPTER ONE
INTRODUCTION
1.1)
BACKGROUND OF THE STUDY
A commercial bank can be defined as a financial institution or company carrying
on the biz of receiving monies other valuables as deposits from the public for
keeping and for lending to the investors on short and medium term basis on
which it charges interest such deposit or repayable on demand to the depositors
or order. ADEKANYA(1993)
The early commercial bank in Nigeria were established by the colonial Govt and
mainly catering for the interest of the expatriates, thus [i]financing
export trade and neglecting agricultural financing. The discriminatory attitude
makes some Nigeria to establishing indigenous commercial banks could be found
in the country which include union bank plc, first bank plc, universal trust
bank limited and afribank plc.These institutions perform such services which
include the acceptance of deposits in form of cash or cheque from
the public granting of loans and overdraft faculties to customers,
issuance of letters credit to worthy customers and fund transfer
service discounting of bills.
Etc.
Despite
the amount of loan being channeled to the agricultural sector for
industrial development by commercial banks, the agricultural sector still
suffers from some in he rent problems militating against the industrial and
agricultural of the nations. And there has been continuous shortage of
basic food items in the nation as a result of lack of agricultural development.
The prices of food items are always develop as result of limited yearly output
of agricultural products. A huge sums of foreign exchange is spent annually on
the important of raw materials for local industries which would
have been source locally, if the agricultural sector was full developed. Also
farmers and other agro-base ventures are not motivated towards obtain
agricultural loan facilities due to the banks stringent measure of loan
appraised, disbursement &re-payment.
Finally, a lot of foreign exchange earnings which would have been earned
through commodity exports as a result of improved agricultural product could
not be achieved due to the under development of the agricultural sector GREENER
(1990). This study will therefore focus attention agricultural loan
disbursement and repayment in Nigerian commercial banks in the there to look
the factors that militate against the proper disbursement and repayment of such
loan in other to revitalize the agricultural sector so as to be self sufficient
in food production and for the economic development of the nation.
1.2 STATEMENT
OF THE PROBLEM
The commercial banks,
farmers and other agro based
industrials are faced
with problem arising from the disbursement and payment of agricultural loans
There is a problem of insufficiency of liquidityawardable to the commercial
banks to meet loan applications by prospective customers or farmers due
to Govt policies on reserve requirement of commercial banks. The customers and
farmers irritability in repaying the loan give to them also militate against the
willingness of banks in agriculture loans. Sometime the security to be offered
by customers for such loans become a problem as some customer found it
difficult to offer a collateral security for such loans which even tonality
deprive them from obtaining agricultural loans Furness (1991).
Most farmers and other agro-based ventures customers deviate from investing the
proceeds of the loan on agricultural ventures for which purpose such loans was
extended during a period of cash sequence in the economy commercial banks often
finds it difficult to extend agricultural loans to credit worth customers due
to scarcity of liquidity. These and other problems, the research intend to
investing in this study.
1.3 OBJECTIVESS
OF THE STUDY
The purpose of this study can be over emphasized because of the increasingly
shortage of food items, poor and inadequate implements being used by farmers
and other agro-based industries and the inability of the commercial banks is
extending facilities to customers due to repayment, security and other problem
being encountered by bank.
The researcher is of the opinion that corrective measure to taken overcome
these predicaments therefore the objectives of the study are:
1.To identify the various criteria for obtaining
agricultural loan towards the development of agricultural.
2. To identify whether the agricultural credit
policy of the government is being adhered to by both the customers and
banks.
3.To check the repayment capabilities of
customers so as to ensure prompt repayment of approved facilities including
interest charges.
4.To motivate farmers and corporate customers in
souring agricultural loan for expansion of their agricultural project.
5.To encourage mechanized farming as a result of
such facilities which could be used for the procurement of tractors and other
farming input.
1.4 SIGNIFICANCE
OF THE STUDY
The study of this, is to emphasize on the increasing
shortage of food items, poor and inductor implements being used by
farmers and the inability of the commercial banks in extending facilities to
their customers due to repayment security and other problems being encountered
by bank.
Department | Banking and Finance |
Project ID Code | BFN0061 |
Chapters | 5 Chapters |
No of Pages | 29 pages |
Methodology | Null |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
|
|
Contact Us On | +2349067372103 |
Contact Us On | +2349094562208 |
|