Loan Management and Performance of Micro Finance Institutions: A Case Study of Kebisoni SACCO in Rukungiri District.
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Date
2024
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Publisher
Kabale University
Abstract
The purpose of the study was to establish the relationship between loan management and the performance of Kebisoni Sacco. This was prompted by the fact that most of the MFIs in Uganda were failing to achieve their performance, yet it was not clear whether this was due to how their loans were managed. The study was conducted as a cross-sectional survey involving an analytical design. Its objectives were to establish and examine the relationship between Loan planning, Client screening, loan control, and the performance of MFIs. Data was collected from 20 respondents represented by the manager, loan officer, and clients. The data were collected using questionnaires and analyzed using quantitative techniques. The findings show that there were significant relationships between loan planning, client screening, loan control, and the performance of the Kebisoni Sacco. The variables also significantly predicted 65.2% of this performance with loan control as the best predictor. However, the conduct of each of these loan management variables had flaws that impacted adversely on the loan performance of Kebisoni Sacco. The study was therefore concluded by stressing the need to improve the control, client screening, and planning of loans if the MFI is to achieve the desired loan performance. Accordingly, it was recommended that MFIs should have loan control, client screening, and loan planning but put more emphasis on ameliorating loan monitoring, taking credit decisions, and linking loan planning to client screening.
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Keywords
Loan Management, Performance, Micro Finance Institutions, Kebisoni SACCO, Rukungiri District
Citation
Tayebwa, Timothy (2024). Loan Management and Performance of Micro Finance Institutions: A Case Study of Kebisoni SACCO in Rukungiri District. Kabale: Kabale