Effect of Loan Repayment on Micro Businesses’ Accessibility to Credit Financing In Gombe Metropolis, Gombe State, Nigeria

Abstract

The study analyses the effect of loan repayment on micro investors’ accessibility to credit financing in Gombe Metropolis, Gombe state, Nigeria. In order to realise this objective, the researchers obtain loan performance documentation from the sampled banks in the study population. This enabled the researcher to identify those micro business operators that accessed bank credit facilities and the level of repayments of the disbursed funds in 2013and 2014 financial years. The researchers administered 140 copies of well-structured questionnaire and elicit relevant data from micro business operators within the study population. Relevant literature gathered from published books, journals, reports, newspapers and magazines were reviewed to conceptualise the study. Resultant data were presented and analysed by the use of Descriptive Statistics, charts, Paired Samples Correlation, Paired Samples t-test and Curve-fit Regression Model. The significant differences of loan repayments were identified and are found to be associated with credit accessibility within the period under review. The study reveals that loan repayment has a positive effect on micro investors’ accessibility to credit financing in Gombe Metropolis Nigeria. On this note, recommendations were made to enhance loan expansion by the financial institutions to micro investors as well as modality for prompt repayment of the borrowed funds.

Keywords: Loan Repayment, Credit Accessibility, Micro Businesses, Performance