Microfinance Bank Interest Rate and Performance of Small and Medium Size Enterprises in Oyo East Local Government Area

Tuned Olutokunboh Obafemi, Lateefat Bukola Babarinde

Abstract


Small and Medium-sized Enterprises (SMEs) are recognized drivers of economic growth, job creation, and poverty reduction. This study investigates the statistical relationship between Microfinance Bank (MFB) interest rates and the financial performance of SMEs in Oyo East Local Government Area. The study employs regression analysis to assess the impact of MFB interest rates on SME financial viability and growth. The study finds that there is a statistically significant impact, with interest rates serving as predictors for SME financial viability and growth. The study concluded that there are critical relationship between Microfinance Bank interest rare and organizational performance of SMEs.


Keywords


Interest rates, Microfinance bank, Financial Performance, Small and Medium-sized Enterprises (SMEs), Lending rates

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DOI: http://dx.doi.org/10.3968/13365

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