The Trend Of Bad Loans Of The Bank During The Past Five Years Essay

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Research question one sought to establish the trend of bad loans of the bank during the past five years. The study shows the trend of loans for the past five years, the types of loans that Societe Generale advances to its customers as identified by the study respondents. Personal Loans, Auto Loans, School Fees Loans and Finance Lease. The study shows that the bank recorded the lowest bad debt ratio in 2013 and highest in 2015. It was attributed to the current economic volatility in the country. The study found that individual and corporate customers as well as small and medium scale enterprises qualify to access loans from the bank and that, personal loans by salaried workers are the most accessed loan facility at Societe Generale. Institutional loans was next in line, followed by School Fees Loans, finance Lease, Auto Loans and lastly, SME loans. The study found that on a scale of 1-5, 1 being the lowest and 5 being the highest, SME loans have maintained a trend of the highest payment default rate followed by Institutional loans (company scheme loans).
5.2.2 To identify the factors that account for bad loans
Research question two sought to identify the factors that account for bad loans in Societe Generale. The study found that high national inflation causes many businesses to fold up therefore rendering those businesses that have accessed loan facilities unable to pay up. High interest rates on loans was the second most cited reason for loan defaults amongst Moreover

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