ASSESSMENT OF CONSUMER LOAN IN UBA LAPAI BRANCH

This study examined the assessment and management of consumer loans in United Bank for Africa (UBA) Plc, Lapai Branch, Niger State. The research was designed to evaluate the process of loan disbursement and management, identify challenges associated with consumer loan recovery, and determine the impact of consumer loans on customers’ financial well-being. A convergent parallel mixed-method design was employed, combining both quantitative and qualitative data. The quantitative data were obtained from 370 structured questionnaires administered to loan customers, while qualitative insights were derived from interviews with four key loan management staff. Descriptive statistics, correlation, t-tests, and binary logistic regression were used to analyze the data. Findings revealed that consumer loans at UBA Lapai Branch are predominantly granted to salaried employees (81.1%), consistent with the Credit Rationing Theory, which emphasizes risk minimization. The study identified income stability, loan monitoring frequency, and salary domiciliation as significant determinants of loan repayment performance, while loan misuse and inflation pressures were major predictors of default. Structural challenges, including a 2,415:1 customer-to-staff ratio, were found to undermine effective post-disbursement monitoring, leading to moral hazard behavior. The research concluded that while consumer loans enhance household welfare and financial inclusion, operational inefficiencies and macroeconomic instability threaten loan sustainability. It recommended the deployment of digital monitoring tools, periodic staff training, and policy reforms to improve credit evaluation, reduce default risks, and strengthen consumer loan performance in semi-urban banking environments. Keywords: Consumer Loan, Credit Risk, UBA Plc, Loan Management, Credit Rationing, Information Asymmetry, Agency Theory.