Interest has appeared from the people need to borrow main agricultural products. Over the time, it has been the subject for many theories-for interest, and against interest-all of them having various reasons. Church has, in general, forbidden interest, but the economic reasons have won, considering fair to reward the creditor for the time passed from the moment of loaning, for the monetary deva...

The study assessed beneficiaries’ satisfaction in the management of loag-contract components by cooperatives involved in the farm credit delivery in Edo State. The objective was to identify the components of the farm loan contract, examine the management strategies and rate the beneficiaries’ satisfaction of such management strategies. This was done by purposively selecting 40 cooperatives invo...

This paper investigates the effect of relationship-lending on loan contract terms, especially on the interest rate, loan value, and collateral requirements. For this purpose, data on 4850 loans granted by a bank in 2016 is employed. Our estimations show a negative and significant relationship between the interest rate and quality and quantity of borrower-lender relationship. Furthermore, there ...

this study was conducted with the objective of identifying the major determinants of loan repayment in small scale enterprises (sses) with particular reference to sses in one of kenya’s most dynamic informal business hub, kariobangi division in nairobi. in order to achieve this objective, primarily data were collected from 50 randomly selected respondents by using questionnaires. descriptive st...

This paperworks out fair values of the stock loanmodelwith automatic termination clause, cap andmargin. This stock loan is treated as a generalized perpetual American option with possibly negative interest rate and some constraints. Since it helps a bank to control the risk, the banks charge lower service fees compared to stock loans without any constraints. The automatic termination clause, ca...

This paper studies the effects of interest rate restrictions on loan allocation. In 1714, the British government tightened the usury laws, reducing the maximum permissible interest rate from 6 to 5 percent. A sample of individual loan transactions from a goldsmith bank allows us to examine how interest rate restrictions affected loan allocation. Average loan size and minimum loan size increased...

This paper deals with loan contracting from a private bank in Vietnam. We focus on the main loan contract features that the bank uses in lending to business firms, namely loan maturity, collateral and loan interest rate. Based upon the simultaneous equation model of Dennis et al. (2000) and the bank’s loan contracting policies, we examine the possible interdependency of the three different loan...