|
|
| |
| Loan Management and Performance of Microfinance Institutions, a Case Study of Pride Microfinance, Nansana Branch, Wakiso District.
Download PDF
|
Namyalo Hanifah, Ngiri Andrew, Dr Ariyo Gracious Kazaara, Kobusigye Prudence, Kaziro Nicholas, Tumusiime Brenda
|
Abstract:
This research was done to look at how microfinance institutions handle their loans and perform. An analysis of the Nansana branch of the Pride Microfinance Institution. To investigate how record keeping impacts financial markets' profitability, particularly Pride microfinance, Nansana branch; to ascertain how debt payment affects those organizations' operating efficiency, particularly Pride micro - finance, Nansana branch; and to decide the connection between loan monitoring and financial management at those organizations, particularly Pride micro - finance, Nansana branch. According to study results, administration practices in lending banks impact default rates. Institution factors account for 30% of survey respondents. Out of 25 respondents, 15 (or 50%) said it was difficult to obtain a loan from one of the Pride Microfinance banks. This proves that there are no administrative hurdles in the way of clients taking loans and repaying them. Nevertheless, 30% of respondents said there were some inconsistencies in acquiring these loans, particularly because Pride Microfinance occasionally required security, which they did not have. The idea that loans may be utilized for other reasons should not be disregarded by planners. Both MFIs and cooperatives must comply with this. The notion that it is feasible to direct funding to particular activities that one may believe to be the most fruitful and helpful for beneficial projects is unfounded. Credit shouldn't be considered a resource with an either a direct or indirect impact on output, similar to seed or fertilizer. Instead, the lenders should make sufficient arrangements and commitments to guarantee that the money was put to its intended purpose. Hence, investors should make sure that lenders engage in ventures they view as fruitful.
|
|
|
| | |