ANALYSIS OF LOAN REPAYMENT AMONG BENEFICIARIES OF LIFT ABOVE POVERTY ORGANISATION (LAPO) CREDIT SCHEME IN DEKINA LOCAL GOVERNMENT, KOGI STATE

Abstract This study examined the Analysis of loan repayment among beneficiaries of the Lift Above Poverty Organization (LAPO) credit scheme in DEKINA Local Government ,Kogi State, Nigeria. The study employed a descriptive survey research design. Data were collected primarily through structured questionnaires administered to beneficiaries. A multi-stage sampling technique was adopted, combining purposive and simple random selection. The sample included smallholder farmers and traders actively engaged with LAPO which are 150. Data were analysed using descriptive statistics and regression analysis. Results showed that most beneficiaries were averagely young (34 years old), female (68.9%), married, and engaged mainly in trading and farming, and earned averagely ₦39,555.56. Attitude towards LAPO was generally positive, as many acknowledged that loans improved their businesses, enhanced financial management, and expanded operations. However, complaints were raised about high interest rates, insufficient loan sizes, inadequate pre-loan training, repayment rigidity, and occasional delays in disbursement. Repayment performance was strong, with 64.7% fully repaid and an average repayment rate of 86% of approved loans, though 35.3% reported overdue balances, mostly small and short-term. Regression analysis revealed that gender, loan amount approved, monthly income, repayment period, education level, repayment mode, and years of engagement with LAPO significantly influenced repayment, while age was not significant. Key challenges faced by beneficiaries included high interest rates, difficulty in securing guarantors, insufficient loan amounts, and rigid repayment schedules. The study concludes that while LAPO has positively impacted beneficiaries’ livelihoods by improving financial access and supporting business growth, repayment challenges remain tied to structural issues of affordability, adequacy, and flexibility. It recommends that LAPO review its interest rate policy, increase loan sizes, adopt flexible repayment structures suited to diverse income cycles, enhance pre-loan training and financial literacy, and simplify eligibility requirements. Timely loan disbursement and supportive monitoring approaches are also advised.