SIGNS OF BAD LOANS TO AVOID IN ENHANCING THE NIGERIAN ECONOMY
1Ihenyen, C; 2Oguah, A.C; 3Aigbomian, S.E and 4Osayomwanbor, P
1,2,3Department of Business Administration and 4Department of Office Technology & Management
Edo State Institute of Technology & Management, Usen, Nigeria
E-mail: djgrandmasdter@yahoo.com
ABSTRACT
Loans can be a business booster if it can be obtained as at when due and on terms that may not be too harsh on the borrower. The financial institution is the main driver of the commerce and industrial sector and if the sector is sick every other sectors of the economy will be sick as well. For some years now the rating of the Nigerian financial Institutions has been wonderful, but in spite of the Nigerian banking sector rating it has not actually stabilize the banks. The bane of this has been the issue of toxic and non-performing loans. This has made loan become scarce for the average Nigerian to obtain. What are the signs to look out with respect to these bad loans? That is the focus of this paper to know when a loan is a bad loan and to avert such.
Keywords: Financial Institution; Sectors; Nigeria Banks; Non-Performing Loans