assessment of the factors that cause non-repayments of loans in commercial banks: the case of national microfinance banks:

to NMB ND 50 respondents participated. The general objective of the study was to find factors to which lead to failure to re- pay loans (NMB Bank borrowers). Specific objectives include: to establish relationship between lenders methods in coordination and follow up schedules during collection of debt, to establish relationship micro credits, to establish the effect of pre- loan training time on the loan repayment rates and to examine the screening criteria used by NMB in issuing loan. Case study design was adopted in the study and qualitative and qualitative research approaches were used n this study. Data collection methods used were interviews, observations and documentary review and instruments used were interview questions, observation and documentary review schedules. Finding indicating that the lenders employed various methods to provide services to borrowers that involved a provision of education borrowers in order to access and the department was established for effective coordination. Finding indicates that there was a mutual relationship between loan repayments and business performance. Finding indicated that those who timely paid their loans were those who doing better in business. It was revealed from the study that they were able to get profit which they used to pay loans either annually, quarterly or monthly. Finding also indicated those who were not effective in repaying their loans had problems in business. Factors which affected the business and hence loan repayments included: weather, market competition, miss-use of loans, poor planning and lack of adequate business education. Finding also indicated that pre-loan training increase the number of borrowers and the rate of pre loan repayments. It was revealed from the study that the bank benefited from increased capital and the capacity to provide loans to many people. Recommendations put forward included: Provision of extensive training to people in both rural and urban areas, collateral to be abolished for borrowers from lower class and the department for loan provision and repayments to be developed.