Credit management and performance of savings and credit cooperative organizations in Uganda: a case study of Aduku Sub County
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Date
2012-10
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Kampala International University: College of Economics and Management
Abstract
The purpose of this study was to establish the relationship between credit management and performance of Aduku Women's SACCO in Apac District. In fulfilling this purpose, the study determined the effectiveness of credit management in terms of credit policies, credit appraisal, credit control and monitoring and determined the level of performance in the SACCO. Later on, relationship between credit policies and performance of SACCO; relationship between credit appraisal and performance of SACOO; and relationship between credit control and monitoring and performance of SACCO were established. A descriptive correlative designs was used in this study and sample size of 126 people of different category were sampled through purposive sampling. Both questionnaires and interviews guides were used as research instruments. Both primary and secondary data formed basis of this study and both questionnaires and interview guides were used to collect data from the field. Study findings reveal that the credit management was general effective in Aduku Women's SACCO (with effectiveness of credit policies rated at the mean of 2.62; credit appraisal of 2.57; and credit control and monitoring of 2.75). The level of financial performance in the SACCO was also found to be high with an overall average mean of 2.62. the research findings also found out that there is significant relationship between effective credit policies and performance
of SACCO at the r. value of 0.981 and a small value of significance of 0.00; it was also discovered that there is a significant relationship between effectiveness in credit appraisal and performance of SACCO at the r. value of 0.991 and a small significant value of 0.00; and lastly it was again found out that there is a significant relationship between effectiveness in credit
control and monitoring and performance of SACCO at the r. value of 0.984 and significant value of 0.00. It was concluded that since there is a positive significant relationship between the two study variables, improvements in credit management is likely eliminate cases of fraud and loses and boost the performance of the SACCO. Improvement in different weaknesses of credit management was recommended so as to achieve better performance levels in Aduku Women's SACCO.
Description
A research report submitted to the College of Economics and Management Sciences in partial fulfillment of the requirements for the Award of a Degree of Bachelor of Business Administration of Kampala International University
Keywords
Credit management, Savings, Aduku Sub County, Uganda.