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Application (10 Minutes)
Refer to Hosea’s case and describe the process that Hosea used to get the funds to start his business. Comment on the problems that he encountered and show whether he was able to solve the problems effectively.
Effective Utilization of Funds
Loan utilization is critical because it affects the loan repayment. It is important that a loan is utilized for the intended purpose, if the loanee diverts the funds to other purposes it means that he/she will not generate sufficient revenue to repay the loan.
Application (10 Minutes)
Work in your group again, refer to Hosea’s case and discuss his problems in loan repayment. Did he utilize his funds as he had stipulated?
Repayment Procedures
The loan repayment procedure defers from one financier to another and the repayment agreement contract between the borrower and the lender. Some of the key aspects agreed upon are:
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