Abstract

The velocity of micro finance among User Groups in Delta State was investigated. Snow ball sampling technique was adopted in selecting 15 micro finance Users Groups for the study A five – year panel data (2000 – 2004) was collected with the aid of questionnaire Data collected was analysed with the aid of descriptive statistics, efficiency model, regression and correlation models. The result of the study shows that a mean of N18,655.33 was purchased by each member as loan, while a mean of N14,965.50 was repaid by each member of the group. Since the mean amount repaid is not significantly different from mean amount borrowed, 1.86 (P>0.05), the null hypothesis which states that there is no significant difference between the amount borrowed and amount repaid was upheld. This implies that the micro finance user groups were efficient in loan repayment/recovery ability. The micro finance users groups recorded loan marketing efficiency of 80.20%. A historical coefficient of variation of 14.77% and 13.8% indicate a relatively high velocity (steady growth rate) in amount of loan distributed and recovered respectively. It was therefore recommended that micro finance user groups should form linkage with financial institutions for the purpose of credit mobilization scheme. Also government policy of financial injection to transform the economy should adopt user group approach as a strategy.

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