THE EFFECT OF LOAN DURATION AND REPAYMENT PERIOD GIVEN BY MICROFINANCE BANKS ON GROWTH AND PERFORMANCE OF SMALL BUSINESS IN ANAMBRA STATE, NIGERIA.

Abstract

Effect of Loan duration and Repayment period given by Microfinance Banks on Small Business Performance in Anambra State, Nigeria was studied by the researchers. The study was descriptive in nature. The population for this study was drawn from the SMEs operating in three major towns in Anambra State. The target population was grouped based on some commercial cities in Anambra State. The sample population was 536 which was obtained from a total population of 2789. This study used a questionnaire for data collection. The study provided two types of data analysis; namely descriptive analysis and inferential analysis. The analysis entailed gathering of data from different sources, their review and analysis to form a deduction. This study used linear regression analysis model and so the study used the analytical software in data analysis. Among the software that was used was Statistical Package for the Social Science version 21.0 (SPSS) and advanced excel for analysis. The linear regression model was applicable since it allowed simultaneous investigation of the correlations among different variables. The study established that the type of business which most of the SMEs in Anambra State engage in, is retailing. The study also established that high interest rates and repayment period inhibited some of the SMEs in Anambra State from accessing microfinance loans to a very great extent.