Year 2019, Volume 5 , Issue 13, Pages 386 - 393 2019-04-28


Adu Cecilia Adurayemi [1] , Owualah, Ikechukwu Sunday [2] , Babajide, Ayopo Abiola [3]

The study investigated the client-enterprise profitability and loan failure of microfinance banks (MFBs) borrowers in Ogun State with a population of forty seven MFBs where twenty MFBs were selected as sample size for this study. The survey design was used through the administration of questionnaire. The linear regression method was used in analysing data and it was found out  that effective monitoring and constant record checking was ensured by the microfinance banks’ staff that made the borrowers keep records of their business transactions through the positive correlation with loan size structuring, (X2 =171.859; p-value<0.01 and correlation coefficient =0.416; p-value <0.01); enterprise profitability further confirmed the highest hazard on period of default with further evidence from the Omnibus tests of model coefficients (X2 = 38.645, degree of freedom=5, P-value<0.001) as indicated in the statistical relevance of the model. It was recommended that there should be an interactive session (interview) between the loan manager and borrower for the establishment of facts stated in the loan request form, quality cash-flow analysis of enterprises should be properly done before loan is granted to SMEs likewise there should be effective monitoring of loan usage by monitoring team of the microfinance banks to avoid diversion.

enterprise profitability, loan failure, record –keeping, loan size
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Primary Language en
Subjects Social
Journal Section Articles

Author: Adu Cecilia Adurayemi
Country: Nigeria

Author: Owualah, Ikechukwu Sunday
Country: Nigeria

Author: Babajide, Ayopo Abiola
Country: Nigeria


Publication Date : April 28, 2019

EndNote %0 International E-Journal of Advances in Social Sciences MFBS CLIENT-ENTERPRISE PROFITABILITY AND LOAN FAILURE IN OGUN STATE NIGERIA %A Adu Cecilia Adurayemi , Owualah, Ikechukwu Sunday , Babajide, Ayopo Abiola %T MFBS CLIENT-ENTERPRISE PROFITABILITY AND LOAN FAILURE IN OGUN STATE NIGERIA %D 2019 %J IJASOS- International E-journal of Advances in Social Sciences %P 2411-183X-2411-183X %V 5 %N 13 %R doi: 10.18769/ijasos.550363 %U 10.18769/ijasos.550363