Assessing the loan repayment position among agricultural borrowers from financial institutions in Uganda: a case of Gulu and Pader District

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Kampala International University, school of Economics and Management
The Ugandan economy like most other developing countries has survived upon credit, grants and donations among other things. Credit in Uganda has been extended to business practitioners through commercial banks, non-Bank financial intermediaries and non-Governmental organizations. However it is believed that there is a rate of default in repayment of borrowed funds from financial institutions and especially so in the agricultural sector. The Main Objective of the study therefore sets out to examine how the existing credit policies used in microfinance institutions affect the loan repayment position in Uganda, to identify the challenges faced by clients in loan repayment in the H agriculture sector in Uganda, to examine the relationship between credit policies and loan repayment position among borrowers of agricultural sector and, to explore the stakeholders’ interventions on improving loan repayment position among agricultural F borrowers in Uganda with specific reference to microfinance institutions in Gulu and Pader Districts. This study adopted a cross sectional survey design. This research design means that it is analytical and descriptive in nature. The two financial institutions that in the study were randomly selected while the managers and credit officers were purposively selected from the rest of the staff. Client respondents were randomly selected. Primary data was obtained using questionnaires and was analyzed in frequencies and percentages. Data was presented in tables and figures. Findings indicated that credit policies are relevant because they favored most of the agricultural borrowers and they assisted in reducing bad debts. Therefore, there is a significant relationship between credit policies and loan repayment. Credit was specially found to be helpful in the provision of start-up capital, expansion of
A Thesis Presented to the School of Postgraduate Studies and Research Kampala International University Kampala, Uganda In Partial Fulfillment of the Requirements for the Degree Master of Business Administration
Loan repayment position among agricultural borrowers, Financial institutions