BACKGROUND OF THE STUDY

Loan is a liability for an individual or

corporation.
They are an asset for the bank because they
provide income in the future to bank.
There are two types of loan long term(house ,
automobiles) and short term ( hand machinery
and for business ).
 Statement of the problem
• For financial institution providing loan is the major activities of
the bank.
• They face some problems with failure of loan recovery,collaterial
evaluation, weak system of loan default.
• There are some research questions
 What is the basis to allow loan to customers ?
 Does the bank give advise to customer when they give the loan?
 What collection technique does the bank use to collect
uncollectable loan ?
 What are the major problems they face when they give the
loan?
 OBJECTIVE OF THE STUDY
• General objective of the study is to assess the provision
and management of loan in case of Abyssinia bank.
• Specific objectives are
• To assess how the bank gives its loan
• To identify problems in granting loan
• To assess collection techniques when there is
uncollectable loan
• To assess how the band advices the customers during
granting the loan
 Scope of the study
• Abyssinia has several branches but the scope
of our study is limited at service of loan
provision in wello sefer branch.
 Significance of the study
• Our study would be benefit to Abyssinia bank
by our finding, recommendation and
suggestion.
• It helps another researchers who would like to
study on loan provision.
• It also gives basic knowledge for those who
can read our research
 Limitation of the study
• The basic limitations are shortage of time to
do the study, financial shortage, lack of detail
information about the provision, and lack of
experience to conduct basic information.
 Organization of the paper
• Our research is organized with five chapters.
the first chapter includes introductory
information. the second includes related
literature review.the third includes the
research design and methodology. The forth
chapter coves data presentation and
analysis.finally the fifth chapter