| dc.description.abstract | The primary role of banks is to receive money from depositors and lend the money to those who need to borrow. Performance in the banking sector is mainly measured on the degree to which money has been lent out, as this will ensure the Bank earns interest income. This study therefore sought to find out the factors affecting the growth for personal loans sector within Barclays Bank of Kenya, with a specific case study of Barclays Bank in Nairobi. The specific objectives of the study assessed the extent to which interest rates, collateral, Barclay's conditions and procedures, and competition affect growth of the personal loan product in Barclays Bank of Kenya.
The study adopted a descriptive design in its methodology. The target population was personal loan customers of Barclays Bank Nairobi. The researcher used random sampling method to draw 370 respondents; i.e. 10 each from the 37 branches in Nairobi. The researcher therefore randomly picked ten customers from each branch in Nairobi to complete a questionnaire. Primary data was collected by questionnaire method.
The outcome was that majority of the respondents had taken personal loans, from other banks and SACCOs other than Barclays bank. The level of interest rate was found to have influenced the decision on where to borrow to a great extent and the respondents suggested its reduction. There was also a general feeling of dissatisfaction by the respondents towards Barclays bank. It was also evident that competition from other banks affected the respondents demand for personal loans in Barclays. The respondents also revealed that Barclays has difficult conditions and procedures attached to the application of the personal loan but not lengthy and cumbersome. Collateral is the most important factor affecting the growth in demand for personal loans, while despite the conditions and procedures being complicated, they are the least important factor affecting the demand for personal loans. | en_US |
