ABSTRACT

Effective loan entails ways of achieving it. It was discovered that the views of the management of commercial banks on profitability is referred to as the amount of credit facilities which banks can consistently maintain for their large number of customers and where the provisions of such facilities is lacking, it will amount to setting the banking system backwards and destroying the idea already put in place to achieving a sustainable economic growth and development by the government of this country-Nigeria. It has also been observed that effective loan management has a direct impact on the profitability of commercial banks in Nigeria provided the management will always maintain the canons of granting loans such as character, capacity, capital, condition and collateral, to ensure Bank customer relationship. In carrying out this work, data were collected from interviewed questions. Questionnaire theoretical framework which highlighted the very problem that aroused the interest of the researcher to carry out this work, were all sources used in gathering different opinions on the topic. Analysis of the data was carried out with the use of frequency tables' simple percentage and statistical method (use of chi-square). After carrying out the analysis on the data, it was discovered that high interest rate scares away potential investors from borrowing, thus, this policy according or the study, does not help the economy of the country. This finding however, reflected on the table II of the study were 98% confirmed. Whether those who borrowed from the bank has been meeting up with the firm frame, the study discovered that 75% confirmed it right meaning despite the continued effect of economic meltdown, majority of the borrowers still pay back on time.