4.2.7.2. Activities of the credit
The operation of granting of credit is a fundamental operation
of any bank. This operation consists of action of credit starting from the
collection of funds collected through deposits of the customers. The bank is
given these appropriations; interests which are added to the refunded principal
and of commission. The sub-branch offers the following types of loan:
Ø Personal loan
Ø Consumer loan
Ø Overdraft facilities
Ø Retail loans
Ø Commercial loan
Ø Housing loan
Ø Investment loans
Ø Salary advance loan, etc.
Credits are given to individual
person, group of people and an association. To get the loan, an individual,
group of people or association must have spent a month working with the bank,
be trust worthy, have profitable project or venture, have good transactions
with the bank and filling other requirements like: an application letter for
credit, explaining the purpose of credit and showing where the repayment will
be generated.
The kinds of collateral security accepted by the bank are
mutual security for the associations and house, land, forest, movable assets
and lastly deposit like monthly salary for an individual.
4.3. Analysis of data from
the respondents
4.3.1. Analysis of
information relating to the commercial activities financed by BPR S.A Kaduha
sub-branch
The researcher endeavored to know rural trading activities
supported by commercial banks mainly BPR S.A Kaduha sub-branch and information
from the respondents was summarized in the table below:
Table 4. 1: Commercial
activities that the traders got bank loan to finance
|
Commercial activities
|
Number of respondents
|
Percentage
|
|
Trading of agricultural products
|
17
|
35.4
|
|
Trading of food processed products
|
7
|
14.6
|
|
Trading of industrial products
|
13
|
27.1
|
|
Trading of service
|
11
|
22.9
|
|
Total
|
48
|
100.0
|
Source: Primary data.
As shown in table 4.1 the research revealed that out of
respondents questioned 35.4% requested loan to finance agricultural activities
followed by the traders of industrial products and services (which count
respectively 27.1% and 22.9%) at the last place come the traders of food
processed products with a percentage of 14.6% of all respondents.
From this information, the research found that in rural areas
the most trading activities supported by commercial banks are trading of
agricultural and industrial products. The commerce of services and food
processed products are less supported. This shows clearly that the banks play
an important role in financing trade in rural areas.
4.3.2. Respondents' view on
credit services offered by BPR SA Kaduha sub-branch
The researcher attempted to know if the bank neither delays
its credit services nor creates barriers to its customers to obtain the loan.
He therefore asked them the amount that they got from BPR S.A Kaduha
sub-branch, the period after which they got the loan from the date of
application and other related questions. The responses are summarized in the
next tables.
| 
