Loan management and financial performance of selected savings and credit cooperatives in Kampala district, Uganda
| dc.contributor.author | Kwizera, Norah | |
| dc.date.accessioned | 2020-07-23T10:01:42Z | |
| dc.date.available | 2020-07-23T10:01:42Z | |
| dc.date.issued | 2014-11 | |
| dc.description | A thesis presented to the College of Higher Degrees and Research in partial fulfillment of the requirements for the Award of the Degree of Master of Business Administration Accounting and Finance) of Kampala International University | en_US |
| dc.description.abstract | The study delved into Loan management and financial performance of the selected Savings and Credit Cooperatives (SACCOs) in Kampala District, Uganda. Specifically, the study sought: to determine the extent of loan management in the New Vision and Toyota Uganda's SACCOs; to determine the level of financial performance; and to establish if there was a significant relationship between the extent of loan management and level of financial performance of the New Vision and Toyota Uganda's SACCOs. Using descriptive correlation and cross sectional survey designs, a sample of 173 respondents was selected and studied through a self-administered questionnaire. Frequency counts and percentage distribution were used to analyze data on the profile characteristics of the respondents; while means and ranks were used to determine the extent of loans management and the level of financial performance of the SACCOs. The study findings revealed as follows. First, the extent of loan management in both SACCOs is generally satisfactory (overall mean=2.57). Second, the level of financial performance was generally high (average mean=2.90). And third, there is a positive significant relationship between the extent of loan management practices and financial performance of the two SACCOs (r=0.619, sig. = 0.000) implying that an improvement in the loan management practices of a SACCO is likely to increase its financial performance indicators. On the basis of the foregoing findings, it was concluded that the extent of loan management and the financial performance of the two SACCOs are generally satisfactory. Nevertheless, the loan management practices of these SACCOs significantly affect their financial performance and financial health. Besides, proper assessment of the creditworthiness of clients, credit period, decision to grant loans and securities, and penalties, significantly enhance the financial health of a SACCO. However, offering incentives in form of discounts to encourage- early repayment may worsen the financial performance of SACCOs. For these SACCOs to improve their financial performance, therefore, the researcher recommends as follows: the loans officers/managers should make sure that they give clients a specific date of repayment; the policy on repayment discounts should be streamlined; the whole practice/policy on securities and penalties should be improved; there is need to reduce the number of defaulters; the need to increase investments in stocks; and to systematize the procedures for deciding to grant loans and credit period. | en_US |
| dc.identifier.uri | http://hdl.handle.net/20.500.12306/10693 | |
| dc.language.iso | en | en_US |
| dc.publisher | Kampala International University, College of Economics and Management | en_US |
| dc.subject | Loan | en_US |
| dc.subject | Management | en_US |
| dc.subject | Financial | en_US |
| dc.title | Loan management and financial performance of selected savings and credit cooperatives in Kampala district, Uganda | en_US |
| dc.type | Thesis | en_US |