Agricultural Loan Disbursement And Repayment In Nigeria Commercial Banks

Agricultural Loan Disbursement And Repayment In Nigeria Commercial Banks

Abstract

The ideal of this study is to estimate agrarian loan disbursement and prepayment in the Nigeria marketable banks. In particular it’s intended to examine the acceptability and prepayment in marketable banks. In carrying out this exploration 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 Nigeriaplc.

The result of the analysis should that agrarian loans has not been effectively expended by the Nigeria marketable banks also the heirs of similar loan has not been repaying them instantly.

Chapter One

Preface

) Background Of The Study

A marketable bank can be defined as a fiscal institution or company carrying on the biz of entering moneybags other valuables as deposits from the public for keeping and for advancing to the investors on short and medium term base on which it charges interest similar deposit or repayable on demand to the depositors or order. ADEKANYA( 1993)

The early marketable bank in Nigeria were established by the social Govt and substantially feeding for the interest of the deportees, therefore( i) backing import trade and neglecting agrarian backing. The discriminative station makes some Nigeria to establishing indigenous marketable banks could be set up in the country which include union bank plc, first bank plc, universal trust bank limited and afribankplc.These institutions perform similar services which include the acceptance of deposits in form of cash or cheque from the public permission of loans and overdraft faculties to guests, allocation of letters credit to good guests and fund transfer service discounting of bills. Etc. Despite the quantum of loan being conducted to the agrarian sector for artificial development by marketable banks, the agrarian sector still suffers from some in he rent problems militating against the artificial and agrarian of the nations. And there has been nonstop deficit of introductory food particulars in the nation as a result of lack of agrarian development.

The prices of food particulars are always develop as result of limited monthly affair of agrarian products. A huge totalities of foreign exchange is spent annually on the important of raw accoutrements for original diligence which would have been source locally, if the agrarian sector was full developed. Also growers and otheragro-base gambles aren’t motivated towards gain agrarian loan installations due to the banks strict measure of loan rated, disbursement &re-payment.

Eventually, a lot of foreign exchange earnings which would have been earned through commodity exports as a result of bettered agrarian product couldn’t be achieved due to the under development of the agrarian sector GREENER( 1990). This study will thus concentrate attention agrarian loan disbursement and prepayment in Nigerian marketable banks in the there to look the factors that militate against the proper disbursement and prepayment of similar loan in other to revitalize the agrarian sector so as to be tone sufficient in food product and for the profitable development of the nation.

Statement Of The Problem

The marketable banks, growers and other agro grounded

industrials are faced with problem arising from the disbursement and payment of agrarian loans

There’s a problem of insufficiency of liquidityawardable to the marketable banks to meet loan operations by prospective guests or growers due to Govt programs on reserve demand of marketable banks. The guests and growers perversity in repaying the loan give to them also militate against the amenability of banks in husbandry loans. Eventually the security to be offered by guests for similar loans come a problem as some client set up it delicate to offer a contributory security for similar loans which indeed tonality deprive them from carrying agrarian loans Furness( 1991).

utmost growers and otheragro-based gambles guests diverge from investing the proceeds of the loan on agrarian gambles for which purpose similar loans was extended during a period of cash sequence in the frugality marketable banks frequently finds it delicate to extend agrarian loans to credit worth guests due to failure of liquidity. These and other problems, the exploration intend to investing in this study.

Objects Of The Study

The purpose of this study can be over emphasized because of the decreasingly deficit of food particulars, poor and shy tools being used by growers and otheragro-based diligence and the incapability of the marketable banks is extending installations to guests due to prepayment, security and other problem being encountered by bank.

The experimenter is of the opinion that corrective measure to taken overcome these predicaments thus the objects of the study are

1. To identify the colorful criteria for carrying agrarian loan towards the development of agrarian.

2. To identify whether the agrarian credit policy of the government is being stuck to by both the guests and banks.

3. To check the prepayment capabilities of guests so as to insure prompt prepayment of approved installations including interest charges.

4. To motivate growers and commercial guests in disaffection agrarian loan for expansion of their agrarian design.

5. To encourage mechanized husbandry as a result of similar installations which could be used for the procurement of tractors and other husbandry input.

Significance Of The Study

The study of this, is to emphasize on the adding deficit of food particulars, poor and inductor tools being used by growers and the incapability of the marketable banks in extending installations to their guests due to prepayment security and other problems being encountered by bank.