A lot more contextual facts are essential from the choice-and make around land and you may borrowing areas in north Ghana
In addition, not, respondents (borrowing officers) generally had misgivings where movable features, by coverage, could also be used while the collateral to access borrowing from the bank out-of economic associations. Almost all our very own participants you are going to cite about one or two cases inside the and therefore banking companies taking that it had been defrauded. One borrowing-administrator detailed:
To the participants, they were most of the crucial considerations to possess securing that loan
The experience over payday loans Dunnavant the years is that unscrupulous users can potentially defraud financial institutions using movable functions once the equity. Particular tend to move say vehicles which were put since the collateral to help you neighbouring nations obtainable. The newest fellow upcoming absconds throughout the nation for decades and you can not even the latest guarantors can easily be tracked.
Acknowledging movable attributes since the collateral may be seen by the participants since the an enormous issue into the Ghana, as creditors will categorise all of them since volatile enterprises you to definitely present financial institutions in order to relatively highest borrowing from the bank exposure and you may extraordinary exchange can cost you inside the tracing fraudulent debtors.
At the same time, since belongings is restricted and you may immobile of the their extremely nature and you may new paperwork should be transferred legally for the bank however if out of default, it is generally considered to be most readily useful guarantee inside the Ghana. Continue reading →