FACTORS AFFECTING EFFECTIVE UTILIZATION OF BANK’S LOAN

In this research a Total of 125 respondents were surveyed (25 who are bank lenders and 100 who are bank borrowers). Descriptive research design was used. Both regression and correlation analysis were executed. This analysis is conducted from point of view: of both borrowers and lenders. From the descriptive analysis of borrowers’ opinion it is found that they agreed that investment sector, investment plan, maintaining loan policy, economic situation, technology, political situation, competitors’ capability, up gradation of business and employment situation can affect the effective utilization of bank’s loan. This research has found in correlation analysis that investment sector, maintaining loan policy, economic situation technology political situation, competitors’ capability, employment situation, internationalization, exchange rate and social and cultural factors, up gradation of business have positive correlation and investment plan has negative correlation with effective utilization of bank’s loan. Investment sector, technology, political situation, up gradation of business, employment situation and social and cultural factors are statistically significant. The regression analysis indicates that investment sector, investment plan, political situation, up gradation of business and social and cultural factors are statistically significant. The analysis of lenders’ opinion shows that they think all of the factors affect effective utilization of bank’s loan.