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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Kampala International University, College of Economics and Management.
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.
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.
Credit policies, saccos in Serere district