Criteria for Assessing Small and Medium Enterprises’ Borrowers in Ghana

• DOI: 10.5539/ibr.v4n4p132
• Publication Date: 2011-10-10T14:47:03Z
• Authors: Daniel Agyapong; Gloria K.Q. Agyapong; Kwabena Nkansah D...
• Keywords: Term loan

This study focused on developing an insight into the decision making process which lenders employ in granting loans to SME borrowers. Questionnaires were administered selected bank branch managers of conventional banks, rural banks and savings companies. Findings from this has brought fore some interesting revelations. The results indicated that when loan are deciding whether accept or reject application, intended purpose loan, repayment previous schedule, type business activity, size relative availability collateral, ranked highest their criteria list. On contrary, CVs clients, government guarantee loans, charges assets gearing lowest list terms importance. relevant factors identified showed took particular interest risk dealing with SMEs. is not out place, as every seeks make profit thus they need be sure recouping monies lend them small businesses. It very necessary for borrowers develop understanding used by financial institutions order increase probability getting request approved fulfilling required adequately.