TABLE OF CONTENT 

DECLARATION ............................................................................................................................. i 

APPROVAI .................................................................................................................................... ii 

AKNOWLEDUEMEN·r ............................................................................................................. iii 

DEDICATION ............................................................................................................................... i, 

LIST OF ACRONYMS ................................................................................................................... , 

TABLE OF CONTENT ................................................................................................................. ,i 

LIST OF TABLES ......................................................................................................................... ix 

LIST OF FIGURES ......................................................................................................................... x 

CHAPTER ONE .............................................................................................................................. 1 

INTRODUCTION ........................................................................................................................... 1 

0 Introduction ................................................................................................................................ I 

Background of the Study ...................................................................................................... 1 

7 Prtlblen1 Staten1ent ................................................................................................................ 4 

3 Purpose of the study ............................................................................................................. ...! 

4 Objectives of the study ......................................................................................................... 4 

5 Research Questions ............................................................................................................... 5 

6 Scope of the study ................................................................................................................. 5 

6.1 Geographical Scope .......................................................................................................... 5 

6.2 Content scope .................................................................................................................... 5 

7 Significance of the study ...................................................................................................... :i 

8 Limitations of study .............................................................................................................. 5 

111l'IER TW

:11-:IZA Ill RE REVIFW ................................................................................................................ 7 

0 Introduction ................................................................................................................................ 7 

Theoretical review ................................................................................................................ 7 

vi 

' ~ Conceptual frame work ......................................................................................................... 8 

.3 Review of Related literature ................................................................................................. 9 

.3.1 Prime interest and commercial or institutional loans ........................................................ 9 

.3 .2 Interest rate and consun1er loans ..................................................................................... 10 

.3.3 Interest rates and interbank loans (foreign demand for loanable funds) ......................... I I 

'HAPTER TH REF ..................................................................................................................... 1.1 

/JETHODOLOGY ........................................................................................................................ 13 

.0 lntroduction ......................................................................................................................... 13 

. I Research Design ................................................................................................................. 13 

1 ·rhe population .................................................................................................................... 13 

.3 Sample Size ........................................................................................................................ 14 

.4 sampling techniques or methods ......................................................................................... 14 

.5 Sources ofData ........................................................................................................... , ....... 15 

.5.1 Primary source ................................................................................................................ 15 

.5.2 Secondary data ................................................................................................................ 15 

.6 The Instruments of Data collection ..................................................................................... 15 

.6.1 Questionnaire .................................................................................................................. 15 

.6.2 lntcn·ie11 guide ............................................................................................................... 15 

.7 rnlidity and reliability of the instrument ............................................................................ 16 

.8 Data gathering (collection) proceclures ............................................................................... 16 

.9 Data Analysis ...................................................................................................................... 16 

HAPTER FOUR ......................................................................................................................... 17 

RESENTATION. ANALYSIS AND INTERPRETATION OF DATA ..................................... 17 

.0 lntrocluction ......................................................................................................................... 17 

. I establishing the relationship between interest rates and borrowing ................................... 17 

:>. Types of interest rates charged by the bank ............................................................................ .30 

HAPTER FIVE ........................................................................................................................... 32 

ISCUSSIONS. SUMMARY. CONCLUSIONS. AND RECOMMENDATIONS ..................... 32 

0 lniroduction .............................................................................................................................. :12 

I objccti'e one: the relationship bct\ccn interest rates and borrowing ..................................... 32 

2 objccti'C 2: types or interest rates charged by the bank ......................................................... .34 

vii 

;.J sumn1ar) and conclusion ......................................................................................................... 34 

,.-t Recommendations .................................................................................................................... 35 

lEFERENCES .............................................................................................................................. 36 

,PPENDIX I ................................................................................................................................. 37 

U'PENDIX 2 PROPOSED BUDGET ......................................................................................... .41