An assessment of the impact of financial education on loan repayment a case study of unique trust bank in the Kumasi metropolis

Abstract

For rapid economic growth, there is the need for small businesses and individuals to have access to loan facilities to expand their businesses. Commercial banks therefore come in handy by way of granting of credits to facilitate the growth of businesses. However, despite the significant impact of credit on small businesses, quite a large number of customers default in repayment of loans granted to them thereby threatening the stability of financial institutions in the country. In this study the researcher have assessed the impact of financial education on loan repayment among customers of all the branches of Unique Trust Bank- Ghana in the Kumasi Metropolis (UTB – K). The main research question that guided the study was what is the impact of financial education on loan repayment? In this report, the researcher used descriptive approach. The population of the study was 200 customers of UTB – K. Data collection instrument was questionnaire and multi- stage sampling was employed. Data was analyzed using Statistical Package for the Social Sciences (SPSS) version 16. The study indicated that financial literacy has an effect on loan repayment. The managerial implications for UTB, limitations of the study, recommendations and suggestions for further studies have been discussed.