The Role of Mobile Loan Apps in Small Business Financing: A Case Study of Traders in Kaduna State
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
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- Recommended for :
- NGN 5000
Background of the Study
Mobile loan apps have emerged as a vital source of financing for small businesses, offering quick and accessible credit solutions to entrepreneurs. In developing economies, where traditional financial institutions may have stringent requirements, mobile loan apps provide an alternative for traders seeking capital to sustain or grow their operations (Okonkwo & Yusuf, 2024).
In Kaduna State, traders frequently use mobile loan apps to manage cash flow, restock inventory, and meet other financial needs. However, concerns about high-interest rates, repayment terms, and financial literacy often limit their effective use (Abdullahi & Hassan, 2023). This study examines the role of mobile loan apps in facilitating small business financing, with a focus on their benefits and challenges.
Statement of the Problem
While mobile loan apps provide an accessible financing option for traders in Kaduna State, issues such as high-interest rates, short repayment periods, and lack of financial literacy hinder their effectiveness. Many traders also face challenges in managing debt and understanding the terms of these loans, leading to potential financial strain (Danjuma & Sani, 2025).
Despite their growing popularity, there is limited research on the impact of mobile loan apps on small business financing in Kaduna State. This study aims to address this gap by exploring their role and implications.
Objectives of the Study
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To assess the usage of mobile loan apps by traders in Kaduna State.
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To analyze the impact of mobile loan apps on small business financing.
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To identify challenges and propose solutions for improving the effectiveness of mobile loan apps.
Research Questions
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How do traders in Kaduna State use mobile loan apps for financing?
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What impact do mobile loan apps have on small business operations?
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What challenges do traders face in using mobile loan apps, and how can they be addressed?
Research Hypotheses
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Mobile loan apps significantly enhance access to financing for small businesses.
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High-interest rates negatively affect the sustainability of loans from mobile loan apps.
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Financial literacy improves the effective use of mobile loan apps for business financing.
Scope and Limitations of the Study
This study focuses on traders in Kaduna State and their use of mobile loan apps for business financing. Limitations include the variability of app features and the influence of external economic factors on traders' access to credit.
Definitions of Terms
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Mobile Loan Apps: Digital platforms that provide short-term loans to users through mobile devices.
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Small Business Financing: The provision of funds to support the operations and growth of small businesses.
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Traders: Entrepreneurs involved in the buying and selling of goods and services.
