Background: In their quest to address poverty and uneven income and\nwealth distribution often attributed to low economic growth performance\nand low labour returns amongst others, the governments of the developing\ncountries through their respective central banks came up with the microfinance\npolicies. In Nigeria, the central bank came up with a policy in 2004,\nwhich aims to give micro, small and medium enterprises access to informal\nfinancial services to boost their capacity towards economic growth and development.\nWhile this policy has reduced the level of poverty among the\nlow-income populace, the operations of the microfinance institutions are receiving\nincreasing threats from the beneficiaries, especially loan default,\nwhich is often as a result to multiple borrowing. Methods: A cross-sectional\nstudy using a mixed method approach was adopted for the study. The questionnaires\nwere distributed to eligible persons and the responses analysed using\nSPSS version 24 and a simple Microsoft Excel. The respondents were\nclients from three randomly selected microfinance institutions in Yola, Adamawa\nState, Nigeria. Results: The outcome of this study has shown that while\nabout 66% multiple borrowing incidences from various microfinance institutions\nwere very high, 91.43% and 77.14% of the respondents believed that\nmultiple borrowing and loan default, respectively, could be prevented\nthrough the use of a common database. Conclusion: It is recommended that\nmicrofinance banks and institutions should invest in implementing a common\ndatabase for managing client requirements and minimizing concurrent\nborrowing and loan defaults.
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