Credit policies and performance of saccos in Serere district. a case study of Amoru village SACCO of Kadungulu sub county in Serere district:
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Date
2019-07
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Publisher
Kampala International University, College of Economics and Management.
Abstract
The study examined credit policy and performance of savings and credit, Amoru Village
SACCO being the case study.
The study based on three objectives namely; to find out the effects of credit terms and standards
on the performance of SACCOs at Kadungulu sub county Serere district, to determine the effects
of collection efforts applied on performance of SACCOs at Amoru village Savings and Credit
Cooperatives (SACCOS) in Kadungulu sub county, Serere District and to establish the effects of
collection period on the performance of Amoru village Savings and Credit Cooperatives
(SACCOS) in Serere District.
The researcher used descriptive research design in investigating the relationship between Credit
policy and the performance of SACCOs. The design was preferred because it entails complete
description of the situation, thus limiting the level of biasness in the collection of data and
eventual reduction of errors in interpreting the data collected. Descriptive research allowed the
researcher to evaluate the states of a defined population with respect to certain variables.
The study found out that good credit terms have a positive impact on the performance of the
SACCO since the clients will be borrowing funds and paying them back in time, there was a high
positive correlation between the credit terms and loan performance. The study also found out that
good credit standards can save the SACCO from cases like loan defaulting by the clients, hence
boosting the financial performance of the SACCO. Collection policy also helps a lot in tracking
the loans from the clients and ensuring that the loans are paid back on time. This has improved
on the performance of Arnoru village SACCO.
The study concluded that credit terms affect performance of Amoru village SACCO as the
clients can afford the interest rates charged by this SACCO. Collection policy influences the
performance of the SACCO.
The study recommended that the SACCO should apply lenient collection methods so that it does
not scare away potential borrowers, a further study should be carried out to investigate the
challenges facing SACCOs in successfully implementing financial management practices, the
study also recommended a further study on the impact of SACCO regulatory bodies on non~
performing loans in SACCOs.
Description
a research report submitted to college of economics and management in partial fulfillment of the requirements for the award of a bachelor’s degree in business administration of Kampala international university.
Keywords
Credit policies, saccos in Serere district