Bank Specific Factors and Loan Repayments Culture of Credit Takers of Microfinance Banks in Kwara State

The loan repayment culture in instrumental to the sustainability and effectiveness of themicrofinance banks but overtime, the microfinance banks in Nigeria have been recording highdefault rates and over-indebtedness from the loans disbursed to credit takers at various categories.Hence, this study investigates the effect of bank specific factors on the loan repayment culture ofthe credit takers of microfinance banks in Kwara State. Primary data was collected from the loanofficers, account officers and marketers of the 33 microfinance banks in Kwara State as at 2023and multi-stage sampling technique was utilized in selecting appropriate sample size of 160 staffof microfinance banks across all the 3 senatorial districts in Kwara State. OLS regression modelwas used to analyze the model and the study found that bank specific factors such as fundingadequacy, interest rate, credit appraisal process and loan tenure do not impact on the repaymentculture of the credit takers of microfinance banks in Kwara State. However, the distance to MFBsappears to be significant indicating the credit takers feel less committed to the repayment of loandue to the distance of the MFBs. This study recommends that microfinance banks should ensureproximity to the credit takers for effective monitoring and loan utilization.