Microfinance Banks Lending Rate and Repayment Capability of Borrowers in Some Selected Microfinance Banks in Kaduna State, Nigeria

Abstract

The research investigated the lending rate and repayment capability of microfinance banks' (MFBs) borrowers in Kaduna State, Nigeria with case study of some selected MFBs having a population of fifty three from where twenty MFBs were selected for this research. The study is purposive (or judgemental) research design. The cox regression was used for the analysis of data obtained from primary source through the use of questionnaire. It was found out that there is positive significant relationship between lending rate and repayment capability of borrowers with hazard ratio of 1.0000 and 1.00019 at 0.01%. It was suggested that there should be consideration for re---negotiation of loan term and condition to improve repayment capability of the borrowers to avoid outright loss of loan and interest.