Browsing by Author "Kibesi Abdu"

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    Credit terms, Managerial Competences and loan repayment performance among microfinance Insitutions in Kampala District.
    (Makerere University Business School, 2024-10-31) Kibesi Abdu
    The purpose of this study was to ascertain how Kampala's Micro Finance Institutions (MFIs)' lending terms, managerial competences, and loan repayment performance related to one another. A cross-sectional research design was adopted for this study. In order to minimize bias and provide all institutions with equal chances of being included in the study, the researcher used simple random sampling to choose an MFI, choosing 42 out of 47. Given the nature of the research questions and objectives, multiple regression was used to assess each independent variable's predictive power in explaining loan repayment performance of MFIs in the Kampala District, while Pearson correlation was used to test their associations. The results show that among Kampala's microfinance institutions, credit terms and managerial competencies had a positive and substantial link with loan payback performance. The analysis shows a statistically significant correlation between the loan repayment performance of Micro Finance Institutions in Kampala District and managerial competences as well as credit terms. These results highlight the significance of taking these aspects into account and optimizing them in order to increase the probability of successful loan repayment performance. Lastly, the regression results show that managerial competency and credit terms account for 43.9% (Adjusted R, Square=.439) of the variability in loan repayment performance, suggesting that other factors not included in this study account for the remaining 56.1%. The study recommends that MFIs should always critically review their Credit terms including collateral, interest rates, credit period and credit history in order to improve their loan recovery rates. There is equally a need to train the owners/managers and their subordinates by MFIs. This will develop their skills, help increase their knowledge and managerial abilities thus increasing the loan repayment performance. A Combination of both competent managers and critical review of credit terms is crucial for the increase in loan repayment performance.