ASSESSMENT OF LOAN ADVANCING PROCEDURE AND PRACTICE (IN CASE OF DASHEN BANK WOLKITE BRANCH

Abstract

The major- objective of this study was assessing the loan advancing procedure and practice in Bank branch with the primary objectives of to assess the lending procedures of Dashen Bank at Wolkite branch. So as to achieve the stated objective the study adopted a mixed method research approach. In this regard, both primary and secondary sources of data were used. To this end, thenecessary data were collected through self-administered questionnaires and the researcher usedjudgmental sampling techniques to select target population among employees and also the researcher used descriptive method of data analyzing. The analysis of the data revealed that renderingto the services given by the bank, Dashen Bank Wolkite branch have been given all bank services, and the banks are working on loan advancing procedures and practices. Regarding to the types of loans, the banks are currentl delivered both long and short-term loan. Concerning with the bank’s loan advancing process collateral as the best instrument. The majorchallengesrelated with loan advancing procedures and practices, are under estimation of collateral and lack of customer awareness with the bank’s policy and procedures. And also, some recommendations were suggested that is this estimate collateral with current market value before providing loans to the customers about the bank’s policy and procedures