The study aimed at establishing the relationship between loan delinquency and performance of
micro finance institutions basing on the following objectives; to identify the causes of
delinquency, examine the indicators of loan delinquency and examine the impact of loan
delinquency to Capital microfinance.
Both qualitative and quantitative research designs were used. The sample size was selected using
a purposive method and sample size of 30 respondents was consideredand they were employees
of the Capital microfinance institution, they comprised of cashiers, accountants loan officers,
ledger keepers and field officers. Examples of the user department samples included finance and
administration, Human resource, !CT department as well as the welfare department.
Data was collected by the use questionnaires given by the respondents and analyzed usmg
means, rank and graphical data analysis.
Findings indicated that loan delinquency is mainly composed of causes, indicators and impact
which constitute average mean of 3.86, 2.87 and 2.83 respectively. The causes of loan
delinquency 3.86 constituted the highest value with impact 2.83 constituting the least value. This
implies that Capital micro finance concentrates more on the causes of loan delinquency and less
on its impact, but the overall loan delinquency was high at an average mean of 3.19.
Recommendations included, the general conduct of the research saw a number of loopholes
around delinquency and its eventual effect. Therefore the researcher felt there should be
improvements in the following areas. Repayment commitments to be sufficiently strong to
discourage borrowers from defaulting, Staff to contact the borrower to communicate the
message that late payment is unacceptable, Micro finance institutions to review credit policies
and operations to ensure they comply with basic principles and methodology and Micro Finance
Institutions to set up a control system to measure refinancing requests.
SSA, R (2021). Loan Delinquency And The Performance Of Microfinance Institutions. Case Study: Capital Microfinance. Afribary.com: Retrieved June 20, 2021, from https://afribary.com/works/loan-delinquency-and-the-performance-of-microfinance-institutions-case-study-capital-microfinance
Research, SSA. "Loan Delinquency And The Performance Of Microfinance Institutions. Case Study: Capital Microfinance" Afribary.com. Afribary.com, 04 Jun. 2021, https://afribary.com/works/loan-delinquency-and-the-performance-of-microfinance-institutions-case-study-capital-microfinance . Accessed 20 Jun. 2021.
Research, SSA. "Loan Delinquency And The Performance Of Microfinance Institutions. Case Study: Capital Microfinance". Afribary.com, Afribary.com, 04 Jun. 2021. Web. 20 Jun. 2021. < https://afribary.com/works/loan-delinquency-and-the-performance-of-microfinance-institutions-case-study-capital-microfinance >.
Research, SSA. "Loan Delinquency And The Performance Of Microfinance Institutions. Case Study: Capital Microfinance" Afribary.com (2021). Accessed June 20, 2021. https://afribary.com/works/loan-delinquency-and-the-performance-of-microfinance-institutions-case-study-capital-microfinance