Improving loan repayment performance of Mityana Town Council saving and credit cooperative organization limited

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dc.contributor.authorBusuulwa, Abubakar Wantaate
dc.date.accessioned2018-12-18T13:22:10Z
dc.date.available2018-12-18T13:22:10Z
dc.date.issued2015-11
dc.descriptionA dissertation submitted to the Directorate of Research and Graduate studies in partial fulfillment of the requirements for the award of the degree of Master of Business Administration of Makerere Universityen_US
dc.description.abstractThe study sought to investigate loan repayment performance of SACCOs in Uganda with a major focus on Mityana Town council SACCO. The study objectives rotated around explaining how loan repayment is managed in Mityana Town Council SACCO, examining the challenges faced by Mityana Town Council SACCO in the process of loan repayment and establishing strategies used to improve loan repayment performance in Mityana Town Council SACCO. A review of literature was done along those lines to generate secondary information and to enable the researcher carry out empirical tests about the subject matter. A study design relying on a cross sectional survey, with descriptive analytical methods as explained by Kothari (1985) and Kumar (2005) was employed, while the study population consisted of staff and SACCO members/owners/ customers of Mityana Town Council SACCO. A total population of 104 was used (Mityana Town Council SACCO Report, 2014). While a sample size of 86 respondents was used in accordance with Kregicie and Morgan (1976) sample size model. Self-administered questionnaires were used to collect responses and measurements were done through a rigorous data processing and analysis process using the statistical package for social scientists (SPSS). The results revealed that effective loan repayment management entirely depends on a good credit policy which entails Information gathering, rigorous screening of borrowers to identify and eliminate risky borrowers in addition to close and effective monitoring. Findings also revealed that challenges faced by the SACCO are both internal (managerial) and external (customer based) which include, few of the borrowers showing willingness to repay, borrowers default because of multiple borrowing, some of the loans have not been backed by guarantors, the amount of loans has been increasing in the past years, loan defaulters have increased on the number of court cases with the SACCOs, that financial costs of the loans do affect the SACCOs, bureaucracy of loan approvals in SACCOs is not friendly and that high interest rates have greatly caused poor loan repayment rates. The study recommended that the SACCOS should emphasize on the credit management that encompasses assessing the risks involved with each loan and then analyzing the total amount of risks for all loans, hence reducing loan delinquency. The SACCO can reduce loan default risks by considering the credits repayment history of both individuals and groups applying for loans.en_US
dc.identifier.citationAbubakar., B W (2015) Improving loan repayment performance of Mityana Town Council saving and credit cooperative organization limiteden_US
dc.identifier.urihttps://hdl.handle.net/20.500.12282/4617
dc.language.isoenen_US
dc.subjectLoan Repaymenten_US
dc.subjectMityana Town Councilen_US
dc.subjectCredit Cooperative Organizationen_US
dc.titleImproving loan repayment performance of Mityana Town Council saving and credit cooperative organization limiteden_US
dc.typeThesisen_US
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