Factors Influencing Loan Repayment Among Savings And Credit Cooperatives Societies (Saccos): A Case Of Chamihado Saccos, Dodoma Tanzania

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ABSTRACT

This study assessed the factors influencing loan repayment among SACCOS

members, specifically in CHAMIHADO SACCOS in Dodoma Municipality. It was

guided by three specific objectives namely: to understand the loan process of

CHAMIHADO SACCOS members, to assess the loan repayment rate among

members and to determine factors influencing loan repayment among

CHAMIHADO SACCOS members.

The sample size of 88 respondents were employed whereby simple random

sampling and purposive sampling techniques were employed, to the select the

respondents, data were collected by using both social survey and personal

interviews, whereas questionnaire, interview guide and documentary review were

employed as tools for data collection. The collected data were analyzed by using

descriptive statistics and qualitative analysis.

Findings revealed that, the processes followed by CHAMIHADO SACCOS

members to secure loans are: To have savings and must be members of the

SACCOS as well as having guarantors who also were members of CHAMIHADO

SACCOS. Moreover, findings have revealed the loan repayment rate among

CHAMIHADO SACCOS members as follows the majority 68% paid their loans on

time followed by those who paid out of time 28% and 4% of them who failed to pay

the loan totally. Further, findings have revealed that, most factors which affected

loan repayments among CHAMIHADO members were low income among

members, low level of education, the number of dependants, borrower’s experience

and the amount of loan receipts.

Basing on the findings from this study, the following recommendations are made:

entrepreneurship skills should be provided by CHAMIHADO SACCOS to their

borrowers before giving them loans. There also should be a regular follow up to the

CHAMIHADO SACCOS members and should ensure a proper allocation of their

loans so as to avoid defaults.

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APA

SSA, R (2021). Factors Influencing Loan Repayment Among Savings And Credit Cooperatives Societies (Saccos): A Case Of Chamihado Saccos, Dodoma Tanzania. Afribary.com: Retrieved May 13, 2021, from https://afribary.com/works/factors-influencing-loan-repayment-among-savings-and-credit-cooperatives-societies-saccos-a-case-of-chamihado-saccos-dodoma-tanzania

MLA 8th

Research, SSA. "Factors Influencing Loan Repayment Among Savings And Credit Cooperatives Societies (Saccos): A Case Of Chamihado Saccos, Dodoma Tanzania" Afribary.com. Afribary.com, 26 Apr. 2021, https://afribary.com/works/factors-influencing-loan-repayment-among-savings-and-credit-cooperatives-societies-saccos-a-case-of-chamihado-saccos-dodoma-tanzania . Accessed 13 May. 2021.

MLA7

Research, SSA. "Factors Influencing Loan Repayment Among Savings And Credit Cooperatives Societies (Saccos): A Case Of Chamihado Saccos, Dodoma Tanzania". Afribary.com, Afribary.com, 26 Apr. 2021. Web. 13 May. 2021. < https://afribary.com/works/factors-influencing-loan-repayment-among-savings-and-credit-cooperatives-societies-saccos-a-case-of-chamihado-saccos-dodoma-tanzania >.

Chicago

Research, SSA. "Factors Influencing Loan Repayment Among Savings And Credit Cooperatives Societies (Saccos): A Case Of Chamihado Saccos, Dodoma Tanzania" Afribary.com (2021). Accessed May 13, 2021. https://afribary.com/works/factors-influencing-loan-repayment-among-savings-and-credit-cooperatives-societies-saccos-a-case-of-chamihado-saccos-dodoma-tanzania