EFFECT OF BANK INTEREST RATE ON BUSINESS OPERATION OF BUSINESSMEN.
 A CASE STUDY OF UNION BANK PLC. ILORIN

BY

IBRAHIM AFUSAT
KWCOED/IL/22/0214

A PROJECT SUBMITTED TO THE DEPARTMENT
OF BUSINESS EDUCATION, KWARA STATE
COLLEGE OF EDUCATION ILORIN.IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF NIGERIA CERTIFICATE IN EDUCATION (NCE)

JULY, 2025
CERTIFICATION 
This project has been read and approved as meeting the requirements for the award of Nigeria Certificate in Education. The research project also meets the standard for appearance, and confirms with the style and format requirement of the Department of Business Education, School of Vocational Study and Technical Education, Kwara State College of Education, Ilorin. 

MRS. KAMALUDDEEN S.A.	 	 ………………….		.........................
PROJECT SUPERVISOR    	 	SIGNATURE           	DATE

MR. ISHOLA M.B       			………………….		.........................
HEAD OF DEPARTMENT    	 SIGNATURE          	DATE

MRS. GIWA M.D.      			 ………………….		.........................
PROJECT COORDINATOR       SIGNATURE          		DATE

DEDICATION
I dedicate this research to my parents Alhaji Abdulqodir Ibrahim Salaudeen and Alhaja Risqot. May Almighty Allah continue to bless them. 

ACKNOWLEDGEMENT
BISMILLAHI ROHMANI ROHEEM
In the of Allah, the most compassionate, the most merciful.
All praise and adorations belongs to Allah, who spend my life and accorded me the opportunity to see the end of this course. Peace and blessings of Allah be upon the noblest prophet, Muhammed (S.A.W ), members of his household, his companions and those who follow them with good deeds until the day of resurrection. 
The research project could not have been written without the immense contribution of  Mrs. Kamaluddeen S.A .who not only serve as my supervisor but also encourage and challenged me throughout this project work. May Almighty Allah always be guiding you and more power to your elbow (Amin). 
I equally remember my late father, Mallam Abdulqodir Ibrahim Salaudeen, may his soul in peace (Amin). I appreciate my lovely mother Mrs. Risqot Ibrahim for her motherly care who in her infinite love and care instilled the value of hand working and integrity, which inevitably propelled me to greatest height in life. May Almighty Allah let reap her soul (Amin).
My heartfelt appreciation also goes to my big brother Ibrahim Habeebullahi Ayinla Aduragba and my sister Ibrahim Habibat wuraola Abike and my amazing siblings, starting from my incredible brother Ibrahim Muhammed Awwal Akanni Temitope. My gratitude also goes to my best partner Ridwanullahi Omokayode Ishola and my friends and relatives, and my buddies your encouragement, companionship and constant words of motivation have kept me grounded and focused especially during challenging movements. This project is testament to the amazing people in my life who have believes in me and stood by me. Thanks you all for being my backbone and my greatest supporters. May Allah bless you all Bihiznillahi (Amin).

ABSTRACT
The purpose of this study was to investigate the effect of bank interest rate on business operation of businessmen. A case study of Union Bank (Plc), Ilorin. 
The target population consisted of all the Union Bank in Nigeria. Union Bank Plc were randomly sampled for the study and hundred customer were randomly sampled from the bank, the questionnaire were used for data collections and chi-square were used to analyse the data. The study revealed that there is relationship between bank interest’s rate and business operation, it help in strengthen the operation of small- scale industries. Many recommendation were made, that reduce interest rate should be made available to enable the small scale businesses to perform effectively.

TABLE OF CONTENTS
Title Page									i			
Approval Page								ii
Dedication									iii
Acknowledgment								iv 
Abstract 									vi
Table of Contents 								vii
CHAPTER ONE — INTRODUCTION
1.1 Background of the Study						 1
1 .2 Statement of the Problem 						3
1 .3 Purpose of the Study							4 
1.4 Research Questions 							4
1 .4 Significance of the Study						 5
1 .5 Scope of the Study 							6
1.6 Definition of Terms 							6

CHAPTER TWO — LITERATURE REVIEW
2.0 Introduction 								8
2.1 Historical Perspective of Interest Rate 				8
2.2 Interest Rate Theory 							10
2.3 Interest Rate Structure						13
2.4 Domestic Bank Interest Rate 					16
2.5 Organizational Structure of Union Bank PLC 			19
CHAPTER THREE RESEARCH METHODS
3.0 Introduction								21
3.1 Research Design 							21
3.2 Population of the Study 						22
3.3 Sample and Sampling Techniques					23
3.4 Research Instruments							24
3.5 Validity and Reliability of the Instrument Used 		24
3.6 Procedure for Data Collection 					24
3.7 Method of Data Analysis						25

CHAPTER FOUR 
DATA ANALYSIS AND DISCUSSION				26
4.1 Respondents Persona 							27
Research Question One							31
Research Question Two							32
Research Question Three							34
Research Question Four							35
4.2 Discussion Results							36
CHAPTER FIVE — SUMMARY, CONCLUSION AND 
RECOMMENDATIONS
5.1 Summary 								38
5.2 Conclusion								40
5.3 Recommendations 							40
References 									42
Questionnaire								44

CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
A bank is a business organisation that receives and holds deposits of funds from others, makes loan or extends credits and transfer funds by written order of depositors. The term is occasionally but incurably applied to commercial banks only, because of the peculiar types of services that commercial banks perform, they maintain and create demand deposits (checking accounts), which are part of a nation’s money supply.
A bank creates a demand deposit when for instance, it lends a customer N20,000 by crediting that sum of his checking account, the customer immediately has N20,000 to spend by writing a cheque. The ability to maintain, create or extinguish demand deposits is critical in the economic life of the nation.
Because the term Bank’ denotes a variety of institution of deposit, on destination is made among categories in discussing banking services except to note when a particular activity or
1vservices is restricted to a particular type of institution. The facilities of bank are available to both individuals and business, whether they are depositors, borrowers or general service customer.
Banks are in business to make money, they levy services charges and fees, but their primary source of income is interest charged on loan. This interest may be assessed at the end of specific periods (straight interest) or it may be deducted from the principal sum at the outset (discount). The types of loan that may a specific kind of bank or financial institution may depend on the law.
Commercial department of the bank typically concentrate a short term after (self liquidating) loans to businesses.
They also make unsecured signature” loan to individuals (within r without consigners) as well as secured loan for the purchase and carrying of securities. These notes may have specified maturities or be payable on demand.
Saving institution and, commercial banks saving department make personal instalment loan to finance the purchase of consumer durables, especially appliances and automobiles instalment loans for other specific purpose such education loan are made for terms up to three years.
Customers of commercial bank may often arrange lines of credits under which the bank will lend up to an agreed limit, as the borrower requires. This has long been common for business purposes.
This study therefore intends to investigate the effect of bank interest rate in business operations of businessmen in Kwara State, a case study of Union Bank (Plc), Ilorin,
1.2 	Statement of the Problem 
The objective of any business organisation is to expend its area of undertaking to enhance maximization of profits. However, no business organisation can be said to be self-sufficient financially. Hence, the entrepreneur makes all efforts to get needed capital for the purpose of expansion.
One of the sources of fund raising is by obtaining of from commercial bank at agreed interest rate. However if the interest rate is relatively low, the entrepreneur will be at advantage to liquidate the total loan secured in the bank, while the objective of securing the loan will be realized. On the other hand, if the interest rate is high the entrepreneur will be at a disadvantage since it will take a longer time to liquidate the loan secured and the objective of getting the loan will be defeated. In this case, the business fortune will be ruined, which may course entire liquidation of the business organisation. Hence, the study would intend to fund out whether high interest rate has any significant impact on business organisation, whether there is any significant relationship between low interest rate and business organisation expansion.
1.3 Purpose of the Study
The study intends to investigate effect of bank interest rate in business operation of bu3inessmen in Kwara state, a case study of Union Bank (PLC) in Ilorin, Kwara State.
It would also intend to focus on the significant of interest rate towards development of business organisation.
It also intends to provide .suggestion towards effective development of business organisation.
1.4 Research Questions
i. Is there a significant relationship between bank interest rate on the business operation of strength of small-scale business?
ii. Is there a significant relationship between credit facilities on customers business and growth of small-scale business?
iii. Is there an upward review of bank interest rate has no significant relationship with the growth of a business.
iv. Is there a high interest rate has no significant influence in the tending rate in bank.
v. Is there credit facility has no significant influence on the
1.5 Significance of the Study
The study is expected to be useful to business entrepreneurs towards their business development.
It would also be formulation of strategies to attract business organisation rates.
The work would serve as a resource for student of banking and those already in the field to further enrich their knowledge.
Finally, the study would serve as a useful bolographic tools for further research work.

1.6 Scope and Limitation of the Study
This research study covers the investigation on effect of bank interest rate in business operation in Kwara State, a case study of Union Bank (PLC), Ilorin.
Furthermore, this study is restricted to the possible factor that could determine the effect of bank interest rate in business operation of businessmen in Kwara State, a case study of
Union Bank (PLC), Ilorin.
1.7 Operational Definition of Terms
Bank can be defined as an institution set up purposely for safe keeping of money, valuable goods and document like wills and other material.
Also, bank can be defined as a business organisation that receiver and hold deposits for fund from other make loan or extend credit and transfer fund by the written order of depositor. There are different types of bank, such bank are: Central bank, Commercial bank, individual bank, Merchant bank, Saving bank, Development and Mortgage bank.

Commercial Bank: can be defined as a financial institution set up for keeping of valuable material for individual, organisation, co-operate bodies and government, the main reason or purpose of commercial bank, is to make profit, example of commercial bank are: A.C.B, First, Wema, U.B.A and Union bank e.t.c.
Depositor: referred to people who operate account with the bank, the depositor can either operate saving account, current account or fixed account with the bank.
Customer: Bank clemencies
Interest: Referred to bank charges from customers who borrow money from the bank.

CHAPTER TWO
LITERATURE REVIEW 
2.0 Introduction 
	The literature review in this chapter is a reference to authorities that have the issue of bank interest rates as organised under the following sub-heading.
2.1 Historical perspective of interest rates
2.2 Interest rate theory 
2.3 Interest rate structure
2.4 Domestic banking interest rates 
2.5 Organisation structure of union bank    
2.1 Historical Perspectives of Interest Rates  
	Interest is a charge for the use of money. It is usually expressed as a percentage of the amount loaned and is computed on an annual basis. Interest is charged by those who have money to lend because they gave its for the period of time interest can be paid on the money borrower anticipates a greater return, in income or other benefits that can be pay back on the money.
Interest has not always been considered a legitimate or even moral payment until the end of the middle ages, any charge for a loan was generally considered to be usury the teaching of the Christian, Judaic and Islamic religion all condemned in varying degree the taking of interest. In more recent time, however, usury has come to be regarded as only charging of illegal rates of interest; the taking of interest for a loan is now almost universally regarded as a legitimate aspect of economic activity.
The shift in attitude toward the payment of interest stemmed from a charge in the economic pattern of western society in particular. This led to an altered view of the nature and function of money. The Aristotle ham and Biblical view held that “money is barren’, that is, to say money was regarded as only a medium of exchange the loan of money was considered to be him for the use of it, so it was not legitimate for example to sell a loaf of bread to a man and then charge him for the use of it, so it was not legitimate to sell money and also charge to- its use. The proper price according to doctrine through the middle age was simply the return of the same money. Any greater payment was termed immoral and was called usury.
The wide spread development of commerce led to a gradual breakdown of the interdiction against interest. As increased industry and commerce afforded greater opportunities for profit, loan were more actively fought, Trader, merchants and businessmen were willing to pay interest because they anticipated a greater return from the employment of the borrowed funds. As borrowing and lending at interest become more widespread in practice the prohibition against interest taking was modified in various way and eventually it broke down completely.
2.2 Interest Rate Theory
According to Philip (1995) interest is most simply defined as the cost of using someone else money or viewed from the other and as the price to be charged for allowing someone also to use your money, hence, one person’s cost is someone else’s income. Just as it is possible to “hire” a car for a period, paying the car hire company a rental which varies with the length of the period of hire, so it is possible to hire a sum of money in return for payment of an agreed interest charge. Thus, although interest is often referred to as “the price of money”, it would really be more accurate to call it the price of the use of money.
Anthony (1990) stressed that the traditional method for banks to directly affect interest rates was through changes in bank rate. Bank rate was the name, which used to be given to the rate at which the bank would rediscount treasury bills or other eligible bills of exchange from the discount houses when acting in its capacity of lender of last resort. To avoid potentially serious losses if their liquidity comes under pressure, the discount houses, when buying bills had to keep their interest rates close to bank rate and this would have a knock on effect throughout the interest rate structure. Indeed the banks use to relate many of their rates directly to the bank rate. Hence, by raising bank rate, the bank could increase interest rates generally and could bring about a reduction by lowering it.
Williams (1990) however reasoned that raising or lowering bank’s interest rates would not on its own bring about general change of interest rates. The participants in the money markets generally needed to be informed about the possibility of having to borrow from the bank rate. Hence, changes in bank rate were usually accomplished by other measures, particularly open market operations, designed to affect the liquidity of fhe markets. Even so, the market occasionally close to ignore changes of bank rate, being convinced that in the short-term there would be enough liquid founds available.
According to Crocket (1991), one would think that raising interest rates would discourage investment and consumption, thereby depressing the demand for money and slowing down the growth f the money supply. However, the actual effect on spending and borrowing is liquid small unless the changes are massive. Furthermore, where the interest rate rises do affect investment plans, they are much more likely to effect long-term ones man short-term ones. This is because the longer the period over which the financing of a project is spread, the greater the proportion of interest in the total cost. This is the reverse of what the government wants to happen, it would usually prefer to depress consumer spending rather than investment, which is vital for the long-term prosperity of any nation.

2.3 Interest Rate Structure
According to Williams (1990) the United Kingdom has a complex and highly developed to the processing of loan and investment funds. The rates of field which are available in these various markets are clearly influences on each other and they tend towards the same level although adjustment have to be made to allow for factors, such as liquidity and safety. As in all free markets, speculators will attempt to take advantage to field rate differentials between different sections of the markets by liquidating investments, or borrowing, in one area and reinvestment at a higher rate of return in another.
David (1989) stressed that the most basic distinction between interest rates is tha1 between short-term and long-term rates. It is a fact that the long-term rates will normally be higher than short-term rates because tender are giving up more liquidity and taking a greater risk that they will not get their money back nevertheless, this relationship can e upset if people expect that short-term interest rate are going to risk dramatically in the future, the long-term rate will fall below the short-term rate. It can be argued that a long-term rate is composed of a series of short-term interest rates.
David (1989) further explained that the general level of short-term interest rates is demonstrated by the yield on. treasury bills and on stock exchange securities that are nearing maturity and have twelve month or less to run the level of long term rates is demonstrated by the yield on government securities when are “long dated’, that s having no fixed redemption date.
Cox (1991) explained that the money market is concerned with the short.-term borrowing and ending of money. Many of the loans arranged through it are for very short-term, ranging right down to call money loan, which are repayable on demand without a period of notice. There are two complementary component parts to this market. First, the discount market through which the discount houses provide short/medium term finance both for government and for commercial by the exchange. Second, the money market proper in which the main participants are the discount houses, which use it to raise the funds which they use as their stove in trade and the commercial bank which provide the bulk of these funds.

According to James (1990) the money market proper facilitate money trading between different financial institutions and does not in itself involve any lending to or borrowing form people or organisations outside the financial community. Bank acquires the funds, which they use in their money market:
dealings through their activities in’ the saving and loans market, in order words, their bread and butter” business of talking deposits from one set of customers and using them to make loan to another set of customers.
Some proportions of customer’s deposits must be held in liquid form so as to be available to cover withdrawals. The banks have found that short-time notice loan in the money market make a profitable income for a significant part of their liquid holdings. The savings aid, loan market is a part neither of the money market nor the capital market, being to some extent an alternative to them. For example, a business requiring medium term finance could obtain it through the loan market by arranging to have an overdraft from US bank or though the money market by discounting bill of exchange. Hence, the participants in the class “call money market” are the banks, the discount houses, the accepting houses, which promote the available of readily discountable bills and the bank of England, which is the assistance, which it can give to the discount houses.
2.4 Domestic Bank Interest Rates
According to Joseph (1989) as well as dealing on the wholesale money markets, the commercial banks also deal in retail deposits and loans through their branch networks. Indeed, for many years, this constituted the whole of their business. Today, it remains the backbone of their operations. The interest rates which they apply on these transactions one of course slightly different from other rates.
Joseph (1989) further explained that base rates from the underlying foundation for most of the domestic interest rates, each bank setting its own base from which it derives most of the rates which are actually applied to customers’ accounts. In the past it was the practice for all banks to relate their interest rates to the bank rate which was set by the bank of. England. The converted to the present system in 1971 when bank rate was discontinued in favour of minimum lending rate, which in turn was discontinued in 1981. In theory, the banks do nor operate a joint cartel to fix their rates at the same eve However, they are all bound by the same market forces and, it s unusual for their base rates to differ by more than a fraction of a percent for more than a few days.
Base rate is not an operational rate in that it is not normally applied raw” to any customers account. Its principal use is as the basis for quoting the interest rates which will apply on most overdrafts, for instance, the customer may be asked to pay 4 percent over base rate with base rate at 13 percent, this would mean that the actual cost of the borrowing would be 17 percent per annum. If base rate changes while the customer is still overdrawn, the rate changed will also change, of course, maintaining the same differential over base rate.
Furthermore, the additional percentage charged on a particular loan will depends largely on the level of risk which the bank seen in the preposition. Large commercial concerns, which often also provide the bank with high commission incomes may be able to borrow at between 2 to 21/2 percent over base rate. Such rates are as low as a bank is ever likely to charge on normal commercial propositions.
They are know as blue chip rates, (Blue chip is an expression borrowed from the stock market where it is used to denote a well run and respected company).
Secured loan to smaller businesses and to personal, customers may be charged at around 3 percent over base rate up to 7 percent over base might be charged for unauthorized overdrafts created by the presentation of cheques without the banks prior permission.
When interest is quoted on such terms, it is calculated daily on the balance actually due to the bank rather than on the agreed limit on the account, hence, if customers reduce their borrowing they reduce their interest charges, this is very importance in the case of and overdraft since the balance hay fluctuate greatly from day to day. This daily calculation is also the basis on which the interest credited to a deposit account is worked out.
Ezike (1990) explained that the rate at which the bank pays interest on deposit account is not specifically related to base rate but is advertised as a separate rate. Nevertheless, it is responds to the same market forces as basic rate and it tends to fluctuate in much the same way.
Deposit rate is always lower than base rate, usually by 8 to 10 percent, the difference between it and the lending rates representing the bank’s source of profit.
2.6 Organisational Structure of Union Bank PLC
The board of director serves as the highest decision making bodies of the organisation, through the shareholder are directly involved in the day to day running of the organisation, their interest are being represented by the group of Board of Directors. The Managing Director serves as a link between the. Board of Directors and the entire staff member in the organisation, hence the Managing Director reports directly to the Board of Directors. The Managing Director is ably assisted by General Manager and Deputy General Manager who overseas the activities of other managers in the organisation. Some of the manager include manager operation of the organisation, next is the manager computer, who decides all activities relating to computers, he decides what types of programming techniques to employs, the various hardware to use and general maintenance f the computers.
The personal manager is responsible for day to day activities of the organisation personnel affair such as staff welfare, recruitment, promotion, training and disciplinary actions. The company secretary who handles all correspondent matters also handle legal matter for the organisation.

CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction
This chapter present the methods used in carrying out the
Study, the element includes the following.
3.0 Research Design
3.1 Population of the Study
3.2 Sample and Sampling Techniques
3.3 Research Instruments
3.4 Vividly and Reliability of the Instrument Used
3.5 Procedure for Data Collection
3.6 Procedure for Data Analysis
3.1 Research Design
This approach to be designed for the study is descriptive. The research was designed to finding the effect of bank interest rate, according to Azuka (1997) is basic for all types of research in assessing the situation as a prerequisite to inference and generalization. This study therefore, describes effect of bank interest rate in business operation of businessmen in Kwara State, a case study of Union bank (PLC), Ilorin.
3.2 Population for the Study
The population of the study comprise of all staff of union bank and business entrepreneurs in Ilorin Township in Kwara state. They include both male and female gender of various educational qualification and years of working/business experience.
The table below represents the number of union bank in Ilorin.
POPULATION TABLE
BANK	CUSTOMER	
Union Bank, Surulere	40	
Union Bank, Unity	60	
Total	100	

3.3 Sample and Sampling Techniques
Although the target population for the study comprises of all businessmen or customer of Union Bank (PLC) and entrepreneur, due to limited time and resources, a sample of those group would be selected.
The sample consists of one hundred (100) respondents randomly selected in Ilorin Township. In this case, the respondents would include forty customers of Union Bank nd sixty businessmen or entrepreneur on the area, the research was not able to cope with the targeted population and so a random sampling technique was used to select customer from each of the two branches in Ilorin Township.
BANK	CUSTOMER	
Union Bank, Surulere	18	
Union Bank, Unity	22	
Total	40	

3.4 Research Instruments
A research designed questionnaire would be adopted as instrument for the study. The questionnaire consists of two sections (A and B).
Section ‘A” deals with the respondent personal data such as sex, educational qualification, year of work/business experience e.t.c.
Section “B” consists of questionnaire items relating to personal experience between effect of bank rate on business operation of businessmen.
3.5 Validation and Reliability of the Instrument Used
To make the instrument valid and reliable, the drafted copy of the questionnaire was given to the supervisor for necessary corrections and suggestion.
This suggestion and correction was collected to help in the requesting of the questionnaire, which was used for data collection from the target population.
3.6 Procedure for Data Collection
The data for the study would be collected through the questionnaire. The administration of the questionnaire to the respondents would be done .by the research through personal contact with the respondent in the various place during which each of them were served with copy each. The completed ones were collected immediately for analysis.
3.7 Method of Data Analysis
The data collected will be analyzed using simple frequency and percentage.
The frequency of response and the percentage will be calculated on each side, that is, information gathered from the two branches used as sample through simple percentage techniques.
Conclusions will be draw on each case based on the response of staff in each question.

CHAPTER FOUR
DATA ANALYSIS AND DISCUSSION
The study is an investigation into effect of bank interest rate on business operation of businessman in Kwara State, a case study of Union Bank (Plc), Ilorin. One hundred respondents participated in the study by responding to questionnaire designed by the researcher and approved by the supervisor, four-research question are proposed for the study which chi—square method adopted to analysis data gathered from the questionnaire distributed.
This chapter therefore, presents the figure in the questionnaire.

Section Al Data
Table 4.1 Respondents Persona
S/N	RESPONSES 	NO OF RESPONDENT	%		
A	Sex			
i	Male	90	45	
ii	Female	110	55	
	Total	200	100	
Researcher Survey 2025
S/N	RESPONSES 	NO OF RESPONDENT	%		
B	Age			
i	20-30	70	35	
ii	31-40	80	40	
iii	41 and above	50	25	
	Total	200	100	
Researcher Survey 2025

S/N	RESPONSES 	NO OF RESPONDENT	%		
C	Marital Status			
i	Married	130	65	
ii	Single	70	35	
	Total	200	100	
Researcher Survey 2025
S/N	RESPONSES 	NO OF RESPONDENT	%		
D	Educational qualification			
i	B.sc, B.ed, B.a	30	15	
ii	HND, ND, NCE	50	25	
iii	M.sc, M.a, M.ed	60	30	
iv	Secondary School Education	42	21	
v	Primary School Education	18	9	
	Total	200	100	

S/N	RESPONSES 	NO OF RESPONDENT	%		
E	Years of Work or Business Experience			
i	5-10	70	35	
ii	11-15	56	28	
iii	16-20	44	22	
iv	Over-21	30	15	
	Total	200	100	
Researcher Survey 2025
S/N	RESPONSES 	NO OF RESPONDENT	%		
F	What types of account do you keep with union bank plc?			
i	Current Account	54	27	
ii	Saving Account	86	43	
iii	Fixed Account	60	30	
	Total	200	100	
S/N	RESPONSES 	NO OF RESPONDENT	%		
G	What is the size of your business 			
i	Large Scale	102	51	
ii	Small Scale	98	49	
	Total	200	100	

Researcher Survey 2025
The table above shows he responses for respondent to the question demonstrated, The analysis shows that most f the respondents (55%) are female, (40%) have put in between 31-40years of age, also (65%) respondent are married, (30%) are first degree graduate in various filed of knowledge, (35%) have put in between 5—l0years of working experience. Also most of the respondents (43%) operate saving account while (51%) have large scale business. Indicating that most of the respondents are knowledgeable due to their educational background, years of experience, type of account operated and the size of business engaged into provide comprehensive information on the subject matter.
SECTION B
Research Question One
Is there a significant relationship between bank interest rate on the business operation of strength of small scale business.
Items	SA	A	SD	D	X2cal	Df cal	Df/Tab	
1	49	34	12	5				
2	52	27	15	6				
3	56	29	8	7	29	9	16.92	
4	45	33	14	8				
Researcher Survey 2025
The table shows responses of participants on significant relationship between bank interest rate on the business operation of strength of small scale industries. The chi-square analysis gave X2 (29), the degree of freedom (r-1) )(c-1 = 9 and at 5% level of significance, the table value is (16.92).
Since the calculated value of X2 = (29) is greater than the table value (16.92) the question is therefore rejected to show that there is significant relationship between bank interest rate on the operation of strength of small scale business.
Research Question Two
Is there a significant relationship between credit facilities on customer business and growth of small scale business.
Table 4.3
Summary of Chi-6quare Analysis for Items 5—8 in the questionnaire
Items	SA	A	SD	D	X2cal	Df cal	Df/Tab	
5	56	28	9	7				
6	48	25	22	6				
7	47	32	16	5	31	9	16.92	
8	52	26	17	5				
Researcher Survey 2025
The table shows responses of participants on significant relationship between credit facilities on customer business and growth of small-scale business. The chi-square analysis gave
x2 =31 the degree of freedom (r-1) (c-i) = 9 value and at 5% level of significance, the table value gave 16.92.
 Since the calculated value of X2 (31) is greater than the table value of (1692), the question is therefore rejected to show that there is significant relationship between credit facilities and growth of small scale business.
Research Question Three
Is there a upward review of bank interest rate has no significant relationship with the growth of a business.

Tabe4.4
Summary of Chi-square Analysis for 9-12 in the Questionnaire
Items	SA	A	SD	D	X2cal	Df cal	Df/Tab	
9	49	34	11	8				
10	52	27	15	6				
11	45	34	12	9	27	9	16.92	
12	55	27	10	8				
Researcher Survey 2025
The table shows responses of participants on significant relationship upward review of bank interest rate and growth of the business.
The chi-square analysis gave X2 = 27, the degree of freedom (r-i) (c-i) = 9 value and at 5% level of significance, the table value gave 16.92.
Since the calculated value of X2 (27) is greater than the table value of (16.92), the question is therefore rejected to show that there is significant relationship between upward review of bank interest rate and growth of business.

Research Question Four
Is there a high interest rate has no significant influence on the lending rate in the bank.
Table 4.5
Summary of Chi-square Analysis for 13—16 in the Questionnaire
Items	SA	A	SD	D	X2cal	Df cal	Df/Tab	
13	48	34	12	6				
14	56	30	8	6				
15	45	39	12	4	35	9	16.92	
16	53	24	18	5				
Researcher Survey 2025
The table shows responses of participants on significant relationship between high interest rate and lending rate in the bank.
The chi-square analysis gave X2 = 35, the degree of freedom (r-i) (c-i) 9 value and at 5% level of significance, the table value gave 16.92.
Since the calculated value of X2 (35) is greater than the table value of (16.92), the question is therefore rejected to show that there is significant relationship between high interest rate and lending rate in the bank.
4.2 Discussion Results
This research project is all about effect of bank interest rate on business operation of businessmen in Kwara State, (A case study of Union Bank (Plc), Ilorin.
This research project has been conducted in such a way that this research methodology use covers wide range of questionnaire in which larger percentage of the people that were distributed to response. Almost the questionnaire distributed within this organisation were returned with response This makes the outcome o the research to a high degree of reliability.
In question one (Qi) the table show that (16.25% SA + A) agreed while (83.75 SD + D) disagreed at 29 x2 calculated with x2 table value 16.92, degree of freedom is 9, therefore, the question, which says that is there a significant relationship between bank interest rate on the business operation of strength of small scale business is rejected because the X2 calculated value is greater than the table value,
In question two (Q2) the table shows that (78.25% SA + A) agreed while (21 .75% SD + D.) disagreed at 31 X2 calculated with X2 table value 16.92, degree of freedom is 9, therefore, the question, which says that is there a significant relationship between credit facilities on customer business and growth of small scale business is rejected because the X2 calculated value is greater than the table value.
In question three (Q3) the table show that 8O25o SA
A) Agreed while (19.75 SD + D) disagreed at 27 X2 calculated value with X2 table value 16.92, degree of freedom is 9. therefore, the question, which says that is there a upward review of bank interest rate has not significant relationship with the growth of a business is rejected because the X2 calculated value is greater than the table value.
In question four (Q4) the table show that (82.25% SA + A) agreed while (17.75 SD + D) disagreed at 35 X2 calculated with X2 table value 16.92, degree of freedom is 9, therefore, the question, which says that is there a high interest rate has no significant influence on the lending rate in the bank is rejected because the X2 calculated value is greater than the table value,

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of Findings
The study investigated effect of bank interest rate on the business organisation of businessmen on Kwara State, a case study of Union Bank Plc, Ilorin. One Hundred respondents participated in the study by responding to questionnaire designed by the research and approved by the supervisor.
Four research questions were proposed for the study while chi-square method was adopted to analysis data gathered from questionnaire distributed. This chapter therefore, present summary of the findings, of the study as follows.
The study shows that:
There is significant relationship between bank interest rate on business operation of strength of small scale business.
There is significant relationship between credit facilities on customer business and growth of small-scale business.
There is significant relationship between upward review of bank interest rate and growth of a business,
Finally, there is significant relationship between a high interest rate and influence on the lending rate in the bank.
5.2 Conclusion
From the foregoing therefore it could be conclude that the effects of bank interest rate cannot be over emphasized. It enhance business operation of strength of small scale business, credit facilities enhance the customer business and growth of small-scale business, upward review of bank interest rate has adverse the effect on growth of business while a high interest rate influence the lending rate in the bank.
5.3 Recommendations
For effect financing of business through bank credit facilities, the following suggestion should be taken into consideration.
The bank interest rate should be lowered or reduced to a reasonable level to attract more patronage to the banking system, this policy will be beneficial to both the customer or entrepreneur and the banking system.
Provision of credit facilities, should be simple devoid of strenuous activities which can discourage potential customer or entrepreneurs from patronization of the banking system.
The issue of demands for collateral security by banks should be done in such a way that it could be easily affordable by the entrepreneur.
It is also essential for the bank to employ adequate qualified staff to ensure effect banking services.
Human relation unit of the bank should be well equipped with adequate qualified personnel and material to ensure effective services to the customer.
Finally, adequate supervision on the project embarked upon by customer should be taken into consideration by the management of the bank to ensure that fund is actually utilized profitable.

REFERENCES
Anthony A. (1990), Banking for Student, London Pitman Ltd.
COX, A (1991) Fundamental of Banking, New York; New York MCClonow hill
Cnockut, H (1991) Modern Business Administration London Pitman,
David A, (1989), Banking Management Englewood Prentice Hill.
Ezike, C. (1990), Nigeria Financial System, London Macmillan Press Ltd.
James, L. (1990), Element of Banking. Britain: MC Domeld Press.
Joseph, W, (1989), Marketing and improving Bank Services, Nigerian Institute of
Bankers Annual Seminar.
Phamlet. A. 1998). union Bank Annual publication Headquarter, Lagos: Union Bank Press Ltd.
Philip, F. (1995), Customer Services: Marketing and the competitive environment, London Pitman Ltd.
Williams, C. (1990), System Market of banking Services, New York Prentice Ltd.
Oyedeji, N.B. (1998), Small Scale Business Enterprises and the Problem of Bookkeeping. The Nigeria Accounting: Journal of the Institute Chartered Accounting or Nigerian 21(2).

QUESTIONNAIRE
KWAA STATE COLLEGE OF EDUCATION, ILORIN
SCHOOL OF VOCATIONAL
DEPARTMENT OF 6USINESS EDUCATION
RESEARCH QUESTIONNAIRE
Effect of Bank Interest Rate on business operation of businessmen.
Dear Respondent,
This questionnaire is designed to obtain your views on the above subject matter. Your objective responses to the questionnaire items will enable the researcher to arrive at reasonable conclusion.
Please tick the appropriate boxes that represent your choice where applicable.
SECTION A
1. Sex: Male ( ) Female ( )
2. Age: 20-30 ( ) 31-40 ( ) 41 and above (
3. Marital Status: Married (   ) Single (   )
4. Educational Background: B.Sc, B.Ed, BA (   ) HND, ND, NCE  (   ) M.Sc, MA, M.Ed (   ) Secondary Schoo4 Education (   ) Primary School Education (   )
5. Years of work or business experience 5-10 (   ) 11-15(  ) 16-20 (   ) Over 21 (   )
6. What types of account do you keep with Union Bank (Plc) Current account (   ) saving account (   ) Fixed account
7. What is the size of your business Large scale (   ) Small scale   (  )
SECTION B
Tick one of the following:
Strongly Agree (SA)
Agreed (A)
Strongly Disagree (SD)
Disagree (D)

S/N	STATEMENT 	SA	A	SD	D	
1.	Bank interest rate is one of the factors that determine buoyancy or other wise small-scale business 					
2.	Inadequacy of most small-scale business to develop financially has nothing to do with the interest rate but lack of efficiency of the entrepreneur 					
3.	A high interest rate reduce lending rate of the bank					
4.	Credit facilities ensure industrial development of the nation					
5.	Bank interest rate merely determine ability of entrepreneur to apply for facilities and not financial strength of small-scale business					
6.	Credit facilities ensure small-scale entrepreneur ability to expend his business					
7.	Small-scale entrepreneur ability to employ qualified