Small and Medium Enterprises Defaults’ in Commercial Banking in Tanzania:Case study in CRDB Bank (PLC)

Hame, Hassan Chande (2014) Small and Medium Enterprises Defaults’ in Commercial Banking in Tanzania:Case study in CRDB Bank (PLC). Masters thesis, The Open University Of Tanzania.

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Abstract

This study examined the relationship between non performing loans associated with Small and Medium Enterprises (SMEs) sector and its determinants among the Commercial Banks in Tanzania. The paper analyse how SMEs could easily access loans from commercial banks to facilitate their transactions, not only for the development of their Enterprises and Shareholders but also for the development of the country through tax payment. Easily accessing of credits have equal footing with payments of credits, this means that SME’s are obliged by the law to pay their loans when falls due, otherwise stern measures are going to be imposed against their collaterals pledged as security in their loans. Loan granting process is a procedure, where by all applicants have to follow all necessary procedures before loans are granted to them. Procedures are including but not limited to; to have business existing, filling application forms, to have the mort-gage being valued by professional values, verification of the valuation by bank officials and finally the loan can either be granted if all processes are in line with the requirements otherwise the application will be rejected. The research methodology used was descriptive which covered both quantitative and qualitative designs. The population of the study covers all commercial banks in Tanzania .In formations are collected by the use of both open and closed ended questions. The questionnaire used five points liker scale which ranged from agree strongly to disagree strongly. Data are edited for accuracy, uniformity, consistency, completeness and are arranged to enable coding and tabulation for final analysis. This study used multiple linear regressions to analyse data.

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