Table of Contents
1. INTRODUCTION 1
1.1 Back Ground of the Study 1
1.2 Statement of the Problem 2
1.3 Objective of the Study 3
1.3.1 General Objective 3
1.3.2 Specific Objectives of the study 3
1.4 Research Questions 3
1.5 Scope of the Study 4
1.6 Significance of the Study 4
1.7 Limitation of the Study 4
2. REVIEW RELATED LITERATURE 5
2.1 Introduction 5
2.2 Credit Assessment 5
2.3 Credit Appraisal 6
2.4 Credit Documentation 6
2.5 Collateral 7
2.6 Interest Rate 7
2.7 Size of Loan 8
2.8 Purpose of Loan 8
2.9 Loan Period 8
2.10 Disbursement 9
2.11 Repayment of Bank Loans 9
2.12 Monitoring and Follow up 9
2.13 Factoring of Debtors through Credit Bureaus 10
2.14 Portfolio Management 10
3. RESEARCH METHODOLOGY 11
3.1 Research Method 11
3.2 Method of Data Collection 11
3.3 Determination of Population Size of the Study 12
3.4 Sample Size 12
3.5 Method Data Analyses 12
4. TIMELINE 12
5. BUDGET BREAKDOWN 13
6. REFERENCES 13

1. INTRODUCTION
1.1 Back Ground of the Study

Bank lending is guided by credit policies which are guidelines and procedures put in place to ensure smooth lending operations. Bank lending if not properly assessed, involves the risk that he borrower will not be able or willing to honor their obligations (Feder & Just 1980).
In order to lend, banks accept deposits from the public against which they provide loans and other form of advances. Since they bear a cost for carrying these deposits, banks undertake lending activities in order to generate revenue. The major sources of revenue comprise margins, interests, fees and commissions (Odongo, 2004).
Beyond the urge to extend credit and generate revenue, banks have to recover the principal' amount in order to ensure safety of depositors’ fund and avoid capital erosion. Bank lending therefore has to consider interest income, cost of funds, statutory