Loan Monitoring Costs and Loan Payment in SACCOs: A Case Study of Hakashenyi SACCO in Kicumbi Kamuganguzi Sub-County Kabale District.
This study aimed to analyze the influence of loan monitoring costs and loan repayment in SACCOs, specifically focusing on Hakashenyi SACCO. The research was guided by the following objectives:To identify the loan monitoring techniques used by Hakashenyi SACCO-Kicumbi Branch, Kamuganguzi Sub County....
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| Format: | Thesis |
| Language: | English |
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Kabale University
2024
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| Online Access: | http://hdl.handle.net/20.500.12493/2118 |
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| author | Mutamureka, Andrew |
| author_facet | Mutamureka, Andrew |
| author_sort | Mutamureka, Andrew |
| collection | KAB-DR |
| description | This study aimed to analyze the influence of loan monitoring costs and loan repayment in SACCOs, specifically focusing on Hakashenyi SACCO. The research was guided by the following objectives:To identify the loan monitoring techniques used by Hakashenyi SACCO-Kicumbi Branch, Kamuganguzi Sub County. To determine the effects of loan monitoring on loan repayment and recovery in SACCOs within the Kabale district. To identify the challenges faced by loan officers in monitoring loans in SACCOs. The study employed a descriptive and cross-sectional survey research design, describing phenomena as they existed. The sample size consisted of 80 respondents. The findings revealed that Hakashenyi SACCO employed several loan monitoring techniques, including physical verification of the borrower’s workplace and mortgaged property, presentation of collateral security to the SACCO, early notifications to the borrower, pledging collateral, and internal auditing.
The study also found that loan clearance and dealing with defaulters negatively affected recipients. It indicated that loan monitoring determines whether the remaining contingency reserves for cost and schedules are adequate. Loans with high loan monitoring costs tend to have higher monthly payments or take longer to pay off compared to those with low monitoring costs. This higher loan monitoring requirement hinders loan requests, affecting the socio-economic status of the recipients. Women, in particular, are given fewer loans due to a lack of collateral, which hinders their development. The interest rates often do not favor women, who are considered agents for development. Women's access to formal loan sources is restricted because they often lack the required collateral. Additionally, the inability to retrieve all loans due to the relocation of business activities or the residences of defaulters affects loan monitoring in SACCOs.
Regarding the challenges faced by loan officers in monitoring loans in SACCOs, respondents identified several issues: poor transport infrastructure to rural areas, clients providing incorrect information, multiple borrowing by clients from different institutions, social factors weakly influencing loan default, lack of a liquidity monitoring system, inadequate managerial competencies, political interference, and significant microfinance losses caused by outright loan default. |
| format | Thesis |
| id | oai:idr.kab.ac.ug:20.500.12493-2118 |
| institution | KAB-DR |
| language | English |
| publishDate | 2024 |
| publisher | Kabale University |
| record_format | dspace |
| spelling | oai:idr.kab.ac.ug:20.500.12493-21182024-07-05T00:00:48Z Loan Monitoring Costs and Loan Payment in SACCOs: A Case Study of Hakashenyi SACCO in Kicumbi Kamuganguzi Sub-County Kabale District. Mutamureka, Andrew Loan Monitoring Costs Loan Payment SACCOs Hakashenyi SACCO Kamuganguzi Sub-County Kabale District This study aimed to analyze the influence of loan monitoring costs and loan repayment in SACCOs, specifically focusing on Hakashenyi SACCO. The research was guided by the following objectives:To identify the loan monitoring techniques used by Hakashenyi SACCO-Kicumbi Branch, Kamuganguzi Sub County. To determine the effects of loan monitoring on loan repayment and recovery in SACCOs within the Kabale district. To identify the challenges faced by loan officers in monitoring loans in SACCOs. The study employed a descriptive and cross-sectional survey research design, describing phenomena as they existed. The sample size consisted of 80 respondents. The findings revealed that Hakashenyi SACCO employed several loan monitoring techniques, including physical verification of the borrower’s workplace and mortgaged property, presentation of collateral security to the SACCO, early notifications to the borrower, pledging collateral, and internal auditing. The study also found that loan clearance and dealing with defaulters negatively affected recipients. It indicated that loan monitoring determines whether the remaining contingency reserves for cost and schedules are adequate. Loans with high loan monitoring costs tend to have higher monthly payments or take longer to pay off compared to those with low monitoring costs. This higher loan monitoring requirement hinders loan requests, affecting the socio-economic status of the recipients. Women, in particular, are given fewer loans due to a lack of collateral, which hinders their development. The interest rates often do not favor women, who are considered agents for development. Women's access to formal loan sources is restricted because they often lack the required collateral. Additionally, the inability to retrieve all loans due to the relocation of business activities or the residences of defaulters affects loan monitoring in SACCOs. Regarding the challenges faced by loan officers in monitoring loans in SACCOs, respondents identified several issues: poor transport infrastructure to rural areas, clients providing incorrect information, multiple borrowing by clients from different institutions, social factors weakly influencing loan default, lack of a liquidity monitoring system, inadequate managerial competencies, political interference, and significant microfinance losses caused by outright loan default. 2024-07-04T07:34:42Z 2024-07-04T07:34:42Z 2024 Thesis Mutamureka, Andrew (2024). Loan Monitoring Costs and Loan Payment in SACCOs: A Case Study of Hakashenyi SACCO in Kicumbi Kamuganguzi Sub-County Kabale District. Kabale: Kabale University. http://hdl.handle.net/20.500.12493/2118 en Attribution-NonCommercial-NoDerivs 3.0 United States http://creativecommons.org/licenses/by-nc-nd/3.0/us/ application/pdf Kabale University |
| spellingShingle | Loan Monitoring Costs Loan Payment SACCOs Hakashenyi SACCO Kamuganguzi Sub-County Kabale District Mutamureka, Andrew Loan Monitoring Costs and Loan Payment in SACCOs: A Case Study of Hakashenyi SACCO in Kicumbi Kamuganguzi Sub-County Kabale District. |
| title | Loan Monitoring Costs and Loan Payment in SACCOs: A Case Study of Hakashenyi SACCO in Kicumbi Kamuganguzi Sub-County Kabale District. |
| title_full | Loan Monitoring Costs and Loan Payment in SACCOs: A Case Study of Hakashenyi SACCO in Kicumbi Kamuganguzi Sub-County Kabale District. |
| title_fullStr | Loan Monitoring Costs and Loan Payment in SACCOs: A Case Study of Hakashenyi SACCO in Kicumbi Kamuganguzi Sub-County Kabale District. |
| title_full_unstemmed | Loan Monitoring Costs and Loan Payment in SACCOs: A Case Study of Hakashenyi SACCO in Kicumbi Kamuganguzi Sub-County Kabale District. |
| title_short | Loan Monitoring Costs and Loan Payment in SACCOs: A Case Study of Hakashenyi SACCO in Kicumbi Kamuganguzi Sub-County Kabale District. |
| title_sort | loan monitoring costs and loan payment in saccos a case study of hakashenyi sacco in kicumbi kamuganguzi sub county kabale district |
| topic | Loan Monitoring Costs Loan Payment SACCOs Hakashenyi SACCO Kamuganguzi Sub-County Kabale District |
| url | http://hdl.handle.net/20.500.12493/2118 |
| work_keys_str_mv | AT mutamurekaandrew loanmonitoringcostsandloanpaymentinsaccosacasestudyofhakashenyisaccoinkicumbikamuganguzisubcountykabaledistrict |