Factors that affected loan repayment under the entandikwa credit scheme (ECS); a case study of Kawempe Division Kampala District

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Kampala International University, College of Economics and Management
Entandikwa is a Luganda word meaning something to begin with. The government of Uganda in March 1995 as part of an effort to address the poverty problem particularly among the rural and urban poor populations launched it. Before this scheme a number of poverty alleviation programs had been put in place and these include among others PAPSCA, RFS, PAP, etc. PAPSCA's overall objective was to address some of the most urgent social concerns of Uganda's most vulnerable groups through strengthening the institutional capacity of government agencies. The RFS and PAP were based on banking principles where by the applicant had to have collateral that made it difficult for the poor to obtain credit. It was therefore suggested that a collateral free revolving fund put in place to cater for the credit needs of the rural populations and urban poor. The major objective of this study was to identify factors affecting loan repayment under the ECS. Specifically, the study appraised the operations of the scheme and analyzed the influence of economic activities of borrowers of loan repayment. Data collection involved primary and secondary data. A sample of 25 beneficiaries was selected out of a population of about 478 using a random approach. The data was then analyzed using SPSS statistical package and the chi-square test statistic. The study found out that the factors affecting loan repayment were social demographic characteristics, amounts of loan advanced to them and the projects in which they invest the loans. However the administration of the credit scheme also left a lot to be desired
A project submitted to the School Of Business and Management In partial fulfillment of the requirement for the Award of a Degree of Bachelors of Business Administration of Kampala International University
loan repayment, Entandikwa credit scheme, Kawempe Division, Kampala District