Bank Credit and Loan Repayment Rates during COVID-19 in Kabale District, Uganda
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Date
2023-10-30
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Abstract
The study was to investigate the impact of bank credit on loan repayment rates in the Kabale region using
Lyamujungu SACCO as the case study. Loan repayment performance at Lyamujungu SACCO has rapidly declined. This
study used a cross-sectional survey method to examine, characterize and compare bank credit and loan repayment in
Kabale district, using Lyamujungu SACCO as the case study. The sample size for each subject type was determined
using the table of Krejcie and Morgan. Out of 150 samples, a sample of 108 people was selected for the study. The
researcher used both purported sampling and simple random sampling to select members/clients of SACCO. Based on
the results in the table, the null hypothesis for all three variables is rejected, with a significance level of (p = <.000, p =
<.040, and p = <.001). This means that there is evidence that the distribution of mean scores for each of the three
variables is not the same depending on the borrower's ability to repay. The study concluded that labor productivity
growth decreased and therefore, income decreased, investment decreased and affected the borrower's ability to
repay loans during the COVID-19 pandemic in Lyamujungu SACCO.