4.3.2.1. Amount received as
credit
The researcher was eager to know the amount of credit that the
loan applicants got from BPR S.A Kaduha sub-branch in order to finance their
commercial activities and the information given is indicated in the table
below:
Table 4. 2: The amount of
credit that traders got from BPR S.A Kaduha sub-branch
|
Amount of credit got from the bank (in Rwandan
francs)
|
Number of respondents
|
Percentage
|
|
Less than 100 000
|
2
|
4.2
|
|
Between 100 000 and 500 000
|
16
|
33.3
|
|
Between 500 000 and 1 000 000
|
24
|
50
|
|
Over 1 000 000
|
6
|
12.5
|
|
Total
|
48
|
100.0
|
Source: Primary data.
As revealed by the table 4.2, a half of respondents got the
amount which is between 500,000 and 1,000,000Rwf; the second place is occupied
by the merchants who requested the amount which is between 100,000 and
500,000Rwf with a percentage of 33.3%; the class of less than100,000Rwf and
more than 1,000,000Rwf have lower percentages (4.2% and 12.5% respectively).
This implies that trade in rural areas is in medium category;
once the requested amount is lower, the project could not exhaustively be
financed and if the requested amount is higher it would lead the customer to
insolvency and mismanagement of loan, and the loan is given according to
various factors including the type of business, business plan and the
collateral security.
4.3.2.2. The period after
which the customer gets loan from the date of application
In order to know the period of getting the loan from the date
of requesting, the researcher asked it to the respondents and they gave the
information summarized in the following table.
Table 4. 3: The period after
which the customer gets loan from the date of application
|
The period of getting loan from the date of application
|
Number of respondents
|
Percentage
|
|
Less than one month
|
11
|
22.9
|
|
Between one month and two months
|
29
|
60.4
|
|
Between two months and three months
|
7
|
14.6
|
|
Over three months
|
1
|
2.1
|
|
Total
|
48
|
100
|
Source: Primary data.
Referring to the table 4.3, 60.4% of respondents revealed that
they got the credit after the period between one and two months, 22.9% received
the credit in the period less than one month, 14.6% got it between two and
three months while 2.1% got it after the period beyond three months.
From the above information, the research found out that the
majority of merchants got the loan in period extending between one and two
months. The portion of applicants who fulfilled the requirements earlier
obtained the loan before one month and those who delayed in accomplishing the
conditions such as the clear and understandable business project, filling of
some documents proving the capacity of loan repayment including the collateral
security and the signatures of some witnesses got the loan in the period which
is between or beyond two and three months.
4.3.2.3. The agreed period of
loan repayment and its respect
The researcher wanted to know the period of loan repayment and
the information from the respondents are given in the table below.
Table 4. 4: The agreed period
of loan repayment
|
Agreed period of loan repayment
|
Number of respondents
|
Percentage
|
|
Less than one year
|
2
|
4.2
|
|
Between 1 and five year
|
38
|
79.2
|
|
Over 5 years
|
8
|
16.6
|
|
Total
|
48
|
100.0
|
Source: Primary data.
According to the above table, 79.2% of the respondents
questioned agreed to repay the loan in the period extends to one and five
years, 16.7% of respondents agreed to repay in the period beyond five years.
Only 4.2% agreed to repay in the period less than one year.
This information clearly shows that the majority of traders
requested for the small and medium term credits. The proportion of 16.7%
received the long term credit.
The researcher also wanted to know if the customers were able
to repay the loan in agreed period, and their views were shown in the table
below:
Table 4.5 : The period in
which the traders repaid the loan
|
Period of loan repayment
|
Number of respondents
|
Percentage
|
|
Within the agreed period
|
42
|
87.5
|
|
Beyond the agreed period
|
6
|
12.5
|
|
Total
|
48
|
100.0
|
Source: Primary data.
From the above table, the majority of traders questioned
(87.5%) confirmed that they repaid in the agreed period 12.5% said that they
repaid the loan beyond the agreed period; they were not able to respect the
period of loan repayment. This implies that the business of those who paid
within the agreed period was successful whereas others might meet some
hardships in implementing their businesses after getting the loan.
Asking the factors that helped those who proved the capacity
of repaying in the agreed period succeed, the responses that they gave are
shown in the table below.
Table 4.6: The factors that
help customers respect the agreed period of loan repayment
|
Factors
|
Number of respondents
|
Percentage
|
|
Low interst rate
|
1
|
2.4
|
|
Profitability of the business
|
38
|
90.5
|
|
Good management of the loan
|
3
|
7.1
|
|
Total
|
42
|
100.0
|
Source: Primary data.
The profitability of the business is the main factor helped
the traders to respect the period of loan repayment as asserted by 90.5% of the
respondents. Normally, the interest rate calculated for commercial projects is
higher comparatively to other projects such as agricultural loan and good
management itself without profitability of the business for a great deal of
respondents (90.5%) cannot help them to repay the loan within the stated
period.
| 
