Loan recovery and management of credits in Uganda Commercial Banks: a case of Centenary Bank-Lira
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Date
2011-10
Authors
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Publisher
Kampala International University: College of Economics and Management
Abstract
This study focused on the methods of loan recovery and management on rural Credit:a case of Centenary Bank Limited-Lira. It covered the loan beneficiaries, non-beneficiaries, Bank staff, local leaders and some opinion leaders, Its specific objectives includes establishing the causes of loan default, examining relative return of the methods used and examining the limitation of the management methods used in loan recovery. The data was collected using both quantitative and qualitative data collection methods by using questionnaires, interviews and focus group discussion. The data was then statistically analyzed using Statistical Packages for Social Scientist (SPSS). The findings revealed that the interest rate charge by the bank to borrows were very high, there was improvement in the utilization of loans obtained by borrowers however, it was also observed that some people failed to pay back the loan because of misappropriation of loan borrowed from bank, natural calamities and high interest rate charge by Centenary bank as well as bad culture of not paying back even if they get profit from the loan borrowed. Therefore, to enhance repayment rate, the bank should encourage group borrowing and sensitized the loan beneficiaries on utilization and repayment of the loan borrowed.
Description
A research report submitted in partial fulfillment of the requirement for the Award of a Bachelor Degree in Business Administration of Kampala International University
Keywords
Loan recovery, Management of credits, Uganda Commercial Banks, Centenary Bank-Lira, Uganda