ASSESSMENT OF LOAN ADVANCE PROCEDURE AND PRACTICE (A CASE STUDY ON COMMERCIAL BANK OF ETHIOPIA, GUBRE BRANCH

Abstract

In Ethiopia, there are various financial institutions such as banks that give financial services like money transfer, deposit and lending to their customers. As other commercial banks in Ethiopia, Commercial bank has its own loan advancing procedure and practice used to advance loan. The aim of this research is to assess loan advancing procedure and practice case study Commercial bank of Ethiopia, Gubrie branch. To obtain the objective the researchers used descriptive research design in this research. The target population for the study were the loan officers of Commercial bank of Ethiopia, Gubrie branch. The total number of employees in the organization is 40. The necessary data for the study was gathered using primary and secondary source of data. Primary data was gathered through questionnaires and interview and secondary data was gathered from Commercial bank of Ethiopia manuals, website and reports. This study used judgmental sampling techniques. After the necessary data was collected the data ‘was processed, analyzed and presented by using tubular form, frequency and percentage. From the findings, conclusion and recommendation, the study concluded that loan is beneficial both to the bank as well as to the borrower and banks have to give a peculiar focus on it. The loan department of the bank is organized by educated and mature employees. The bank should provide regular training to all its Employees in general and loan officers in particular on how to handle customers. The bank should always collect the loans from the borrowers.