Credit policies and performance of commercial banks in Uganda a case study of equity bank-wandegeya branch kampala district in Uganda

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Kampala International University, College of Economics and Management
The study aimed at assessing the effects of credit policies on the performance of micro finance institutions in Equity Bank of Uganda taking the case study to be Wandegeya branch. The study mainly looked at credit risk policy and the performance of Equity bank and to find out whether this policy was effective to the bank. For effectiveness of the research, the researcher used a research design and data collection and analysis were used to arrange the information in such a way that enabled the researcher to come up with the reliable recommendations and conclusions. Different methodologies were employed which were research design, study population, sample design, research instruments and analysis of data where the researcher used pie charts and presentations done in bar graphs. It was realized that the performance of any microfinance institution depends on its existing credit policy at any given time period thus Equity bank use credit policy to evaluate credit worthiness of its customers hence this has enabled the bank to run smoothly and effectively. It was also found out that Equity bank uses credit rating policy which helps them to rate the credit worthiness of its customers. Credit rating also helps the bank to reduce the defaulters of the bank. It was also revealed that the bank uses credit evaluation where this looks at the in-depth analysis in a client's application. It is the duration it takes a client to access the funds from the time an application on credit facility is tendered in to the time the bank disburses the loan. It is hue that majority of the clients take a month for their Joan to be approved from Equity bank thus is seen when the customer has met all the requirements needed by the bank.
A research report submitted to the College of Economics and Management in partial fulfillment of the requirements for the Award of Bachelor's Degree in Business Administration of Kampala International University
Credit policies, Commercial banks, Equity bank-wandegeya, Uganda