THE CRITERIA OF BORROWING AND REPAYING BUSINESS LOAN AS A GUIDE TOWARDS ECONOMIC DEVELOPMENT ( A CASE STUDY OF FIRST BANKS OF NIGERIA PLC ENUGU MAIN BRANCH

TITLE PAGE

APPROVAL PAGE

DEDICATION

ACKNOWLEDEMENT

ABSTRACT

TABLE OF CONTENT

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF DEVELOPMENT BANK IN NIGERIA

1.2 STATEMENT OF PROBLEMS

1.3 STATEMENT OF HYPOTHESIS

1.4 OBJECTIVES OF THE STUDY

1.5 IMPORTANCE OF THE STUDY

1.6 SCOPE AND LIMITATION OF THESTUDY

1.7 DEFINITION OF TERMS

CHAPTER TWO

2.0 REVIEW OF RELATED LITERATURE

2.1 TYPES OF LOANS AND ITS SIGNIFICANCE

2.2 FORM OF LOAN PRESENTATION OF LOAN PROPOSAL

2.3 ELEMENT OF GOOD BANKING ADVANCE

2.4 PURPOSE OF THE LOAN

2.5 THE SECRETE OF REPAYING LOANS

2.6 THE ROLE OF BORROWING AND REPYAIANG BUSINESS LOAN IN THE NAITONAL ECONOMY

2.7 DISTRIBUTING BANK SERVICE

CHAPTER THREE:

3.0 RESEARCH METHODLOGY

3.1 SOURCES OF ATA

3.2 RESEARCH POPULATION AND SAMPLE SIZE

3.3 RESEARCH ISNTRUMENTS

3.4 DATA ANALYSIS TECHNIQUES

CHAPTER FOUR:

4.0 PRESENTATION AND ANALYSIS OF DATA

4.1 ANALYSIS OF DATA FROM CUSTOMERS

4.2 TEST FO HYPOTHESIS

CHAPTER FIVE:

SUMMARY OF FINDINGS CONCLUSION AND RECOMMENDATION

FINDINGS

CONCLUSION

RECOMMENDATION

BIBLIOGRAPHY

APPENDIX

PROJECT PROPOSAL

My aim of researching on this topic; the criteria of borrowing and repaying business loan ad a guide towards economic development ( a case study of first Bank of Nigeria plc Enugu) Is to scrutinize vividly, the criteria of borrowing and repaying loan in Nigeria.

This project research is intended to enlighten borrowers who are in need of financial aid on what to base their stand before approaching their Banks for any sort of financial help.

The project is written in partial fulfillment of the award of higher national diploma in accountancy with relation to school of financial studies

It is also design to foster bank customer s borrowing in Nigeria by stressing on the factors related to bank lending. The first factor of it is the bank rigid requirements for borrowing. The second is the customer ability to possess good reputation towards his banker and the last but not the least is the government’s control of bank’s activities in Nigeria.

For this research topic, internal to source and gather data both primary and secondary. Intend to collect data primarily though personal interview and use of questionnaire to the staff and customer of commercial banks. I also intend to collect information secondarily through publications, text books, journals and periodical, news paper and magazines and government publication’s from libraries. This is basically to evaluate the related literature on the research topic and also to help the researcher understand some basic concept in the study.

I foresee some constraints in the course of carrying out this project such as. Tim factor- the time allocation for the project made it impossible for the researcher to travel far to be able together information that will help in the course of this project, communication barrier is also another factor that I may experience because some of the respondents may not feel at ease when responding. High cost of research materials and lack of sufficient funds to carry out a large scale research project is also one of the problem the research will encounter etc

This project is very timely and will be of immense value now and in the future to borrowers of business loans, particularly small and medium scale enterprise.

CHAPTER ONE

1.0 INTRODCTION

The rigous and strains of borrowing, especially in Nigeria and Africa in general are not doubt enormous.

The fault is not that of the lenders (banks) alone as critics claim that the borrowing public are partly responsible for the frustrations. A large portion of the borrowing public are substantially under-educated (about borrowing with this regard, they approval heir prospective lenders unprepared and largely ignorant of the why’s and what’s of their request. A substantial number of people who approach banks for loans have no business going to the banks to borrow in the first place. If at all their business and needs are gerund, perhaps they should have tried their friends, relatives or associates first before going to bank to borrow. No one can fault the bank (lender) on their criteria because the banks is also in business ot stay and grow.

Among all other activities of the banks lending is the most vital bank undertaking which should be carefully emphasized, may because it is the most profitable undertaking of the bank or its contribution to the economic growth of the country in general

The federal reserves system,. Financial intermediaries, government and business can be thought of making up the financial environment within which we all strive to achieve our goals but which largely is beyond the control of any single decision unit. Due to the lack of substantial knowledge about the behaviour of this financial environment, however, we are advised to enhance that knowledge. It seems clear to me that we all have an interest in the development of empirically substantiated theories of behaviour of a financial economy. After-all, failure of broad section of the economy, whether in the form of inflation’s, mass bank failure or in dispread business closing is a situation whereby large portion of the borrowing with the result that they approach their prospective lenders unprepared.

The burden of proof is therefore in the prospective borrows should be educated, and get educated is there fore the message of this topic. It is a further contribution to the promotion and development of an improve business culture by helping to educate the borrowing public. The most critical Turing in a loan proposed are really simple ordinary things that many borrowers especially first time borrowers and small scale enterprises regard as unnecessary and in consequential. The borrower should know that the loan officer cares about the neatness of the documents presented, the language of ht proposal, its substance, the character of the promoters and