Factors Affecting Financial Sustainability of Savings and Credit Cooperative Societies in Tabora Region.

Barongo, Denis Mujuni (2021) Factors Affecting Financial Sustainability of Savings and Credit Cooperative Societies in Tabora Region. Masters thesis, The Open University of Tanzania.

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Abstract

Savings and Credit Co-operative Societies were established worldwide for the purpose of providing financial services to poor people. The main objective of this study was to analyse factors affecting the financial sustainability of Savings and Credit Co-operative Societies in Tabora Region, Tanzania. Specifically the study evaluated the influence of loan repayment policy on financial sustainability; assessed the influence of loan defaulters on financial sustainability; examined the influence of management on financial sustainability. The study adopted mixed-methods approach to collect data from a sample of 30 respondents. Household surveys, questionnaires and documentary reviews were the methods used to collect data. Data were analysed using descriptive statistics whereby frequency and percentage under the aid of Statistical Package for Social Science (SPSS) was used. The findings indicated that time taken to process loans, credit evaluating criteria, and credit committee on loan recovery, influenced financial sustainability of SACCOS. Furthermore, poor loan repayment, collateral and financial liquidity of the SACCOSs determined the influence of loan defaulters on financial sustainability. Finally, the findings showed that, dividend payment to members and insisting compulsory savings awards to super savings determined the influence of management on financial sustainability. This study concludes that, SACCOS manage credit risk by employing credit evaluating criteria in the assessment of borrowers’ credit application regarding financial history, cash flow repayment ability, and collateral. It is recommended that, dividend payments to members should not be made by the SACCOS until the account balance is sufficient to cover all losses. Keywords: Financial sustainability, SACCOS, Loan repayment, Loan defaulter, and Loan management

Item Type: Thesis (Masters)
Subjects: 300 Social Sciences > 330 Economics
Divisions: Faculty of Business Management > Department of Accounting and Finance
Depositing User: Mr Habibu Kazimzuri
Date Deposited: 06 Jan 2023 14:21
Last Modified: 06 Jan 2023 14:21
URI: http://repository.out.ac.tz/id/eprint/3216

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