A Comparative Analysis of Loan Repayments between Credit Cooperatives Societies and Microfinance Institutions Borrowers in Babati District

Chachalika, Kassim Athuman (2013) A Comparative Analysis of Loan Repayments between Credit Cooperatives Societies and Microfinance Institutions Borrowers in Babati District. Masters thesis, The Open University of Tanzania.

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Abstract

The study was conducted in Babati District in Manyara Region with the main objective of comparing the extent of loan repayment between MFIs and SACCOS, and to identify the causes of poor loan repayments. Hence suggest solutions for improving borrower’s livelihood. The specific objectives of the study were to evaluate the percentage of loan default and factors contributing to Loan default rate in SACCOS AND MFIs, The methodological used to collect data from borrowers and lenders in the specific study area were the structured questionnaires were used to collect primary data from borrowers and lenders. Also, secondary data was used to collect empirical information from various literature sources. The population of this study was both borrowers from four lending institutions which are; PRIDE Tanzania Ltd Babati Branch, Small Industry development Organization (SIDO) Manyara, Babati SACCOS Ltd and Revival Church SACCOS Ltd, Babati Branch both in Babati District. The total of 140 samples was taken from all four lending institutions of which 35 respondents were taken from each. The study show that, an analysis of the data in regards to poor loan repayments were caused by borrower’s family problems, unfavorable financial lending strategies policy implemented by some lenders, high interest rate, multiple loans. It is recommended that, in order to move in the right direction of saving and improving the livelihood of the poor borrowers, both players which are; Government, borrowers’ representative, and other stakeholders should be involved in preparation of a transparency and favorable balanced Microfinance Policy that will aim to assist the poor borrowers and not to give lenders the loop hole of surviving for expenses of their clients.

Item Type: Thesis (Masters)
Subjects: 600 Technology > 658 Gerneral management
Divisions: Faculty of Business Management > Department of Leadership and Governance
Depositing User: Mr Habibu Kazimzuri
Date Deposited: 14 Jan 2016 12:00
Last Modified: 14 Jan 2016 12:00
URI: http://repository.out.ac.tz/id/eprint/851

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