ABSTRACT
This study seeks to examine the lending policies in commercial banks in Nigeria, using Access Bank Plc, Kaduna as a case study. Bank Lending policy is a statement of its philosophy, standards, and guidelines that its employees must observe in granting or refusing a loan request. These policies determine which retail or corporate clients the deposit money banks approved for loans and which will be avoided, and must be based on the bank lending laws and regulations. To this end, the objectives of the study is to determine and appraise the lending procedures of Access bank plc, ascertain government policies in lending policies of money deposit banks, highlight the extent to which improper project evaluation and inadequate collateral securities provision by borrowers increase the incidences of bad debts in Access Bank. A descriptive survey was employed in this study, using a sample size of seventy; a questionnaire was used to gather the primary information. Descriptive statistics was used to summarize the data and findings presented using tables as appropriate for ease of understanding and analysis. The study found that lending policies and non-performing loans are indeed related. Lending policies helps the banks lend prudently and lowers the risk level to the banks, and strict adherence to lending policies therefore has led to reduced non-performing loans. It was among other things recommended that Central bank should provide strict lending policies based on the prevailing economic environment as this will ensure uniformity in administration of credit facilities.