External Loans and the Growth of Savings and Credit Co-Operatives: A Case Study of Nakawa Trader's Sacco.
| dc.contributor.author | Macrine, Kangabe | |
| dc.date.accessioned | 2020-07-14T09:26:02Z | |
| dc.date.available | 2020-07-14T09:26:02Z | |
| dc.date.issued | 2018-10 | |
| dc.description | Dissertation Submitted To The College Of Economics And Management In Partial Fulfillments Of The Requirements For The Award Of A Degree In Business Administration Of Kampala International University | en_US |
| dc.description.abstract | The overall purpose of the study was to find out the relationship between external loans and the growth of SACCOs using Nakawa Traders SACCO as a case study. The study was guided by four objectives including: to establish the effects of external loan on the growth of SACCOs; to establish the relationship between external loans and the profitability of SACCOs; to find the relationship between external loans from the government and the level of outreach of SACCOs and to establish the relationship between external loans and the sustainability of SACCOs. The study used a cross sectional survey design where 5 board members, 3 staff members and 42 SACCO members participated in the study through interviews and filling in questionnaires. Data was analyzed using descriptive statistics and tables. Several effects of external of external loans were reveled from the study findings and these included: Increases loan portfolio, Increases Share capital, Leads to Expansion in Members businesses, Leads to increased Voluntary savings and Loan sizes and interest earned increase. The positive effects of external loans on the profitability of SACCOs include increasing loan portfolio, enabling disbursement of larger loans, increasing membership and share capital among others. The negative effects of external loans on the profitability of SACCOs include; increasing delinquency and default, poor loan appraisal, fraud among others. External loans affect the SACCOs level of outreach through enabling the SACCO to; extend more loans, serve the active poor, serve more women, attract more members among others. External loans have both positive and negative effects on the sustainability of SACCOs. The positive effects include: external loans acting as a cheap source of capital, improving on the SACCO's liquidity, reduces on the SACCO's debt load among others. The negative effects include: lower repayment rate, staff members ignoring loan appraisal and issuing bad loans, leading to fraud and collapse of the SACCO among others. The study recommended that before extending external loans to SACCOs they should train board, staff and the members, should ensure that SACCOs have a technical staff with at least a diploma in any business course who will manage the funds effectively among others. The study suggested further research to investigate the: factors affecting loan default in SACCOs that access government support in Uganda in Uganda; motivational factors leading to high repayment in SACCOs' that access government support in Uganda; and the effect of fraud and government support through MSC on the sustainability of SACCOs in Uganda. | en_US |
| dc.identifier.uri | http://hdl.handle.net/20.500.12306/8024 | |
| dc.language.iso | en | en_US |
| dc.publisher | Kampala International University, bachelors degree in business administration | en_US |
| dc.subject | External Loans | en_US |
| dc.subject | Growth of Savings and Credit Co-Operatives | en_US |
| dc.subject | Nakawa Trader's Sacco | en_US |
| dc.title | External Loans and the Growth of Savings and Credit Co-Operatives: A Case Study of Nakawa Trader's Sacco. | en_US |
| dc.type | Other | en_US |