Loan Management Strategies on the Efficiency of Selected Microfinance Institution in Rwanda

ABSTRACT 

The present study assessed loans management strategies on the effidency of selected microfinance institution in Rwanda. The research was guide by four objectives; to identify the personnel, demographical profile of respondents; establishing the level of loans management strategies in selected microfinance institution in Rwanda; determining the degree of efficiency of the loans management strategies and finally to identifying if there are relationships between the level of loans management strategies on the degree of efficiency of selected microfinance institution. The research followed a descriptive correlation survey design, Primary data was collected using self administered questionnaire issued to the respondent, Data was collected using a simple size of 169 from a population of 215 of two microfinance’s CFE SA AGASEKE and GOSHEN FINANCE SA. Data analysis was done Data analysis was based on descriptive statistics (SPSS) and presented in tables, percentages and with the used Person’s correlation which was used to measure the relationship between loans management strategies on the efficiency of selected microfinance institution. The findings disclose a positive and significant relationship between loans management strategies on the efficiency of selected microfinance institution. Therefore, it was concluded that MFIs efficiency in Rwanda is generally affected by their loans management. Thus the study recommends to the future researchers to analyze risks of the loan portfolio of a Mfl, the loan management like an efficient tool of a better profitability and the impact of the profitability on the growth of a MFL

TABLE OF CONTENTS

Preliminaries

Declaration A

Declaration B ii

Approval sheet iii

Dedication iv

Acknowledgements v

Abstract vi

Table of contents vii

List of tables

Chapter Page

One THE PROBLEM AND ITS SCOPE 1

Background of the Study 1

Statement of the Problem 2

Purpose of the Study 3

Research Objectives 3

Research Questions 3

Hypothesis 4

Scope 4

Significance of the Study 4

Operational Definitions of Key Terms 5

Two REVIEW OF RELATED LITERATURE 7

Concepts, Ideas, Opinions from Authors/Experts 7

Theoretical Perspectives 29

Related Studies 31

Three METHODOLOGY 35

Research Design 35

Research Population 35

Sample Size 35

Sampling Procedure 35

Research Instrument 36

Vahdity and Reliability of the Instrument 36

Data Gathering Procedures 36

Data Analysis 37

Ethical Considerations 37

Limitations of the Study 38

Four PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA 39

Introduction 39

Profile of respondents 39

Level of loan management strategies 41

Degree of efficiency of MFI 44

Correlation between loan management strategies and efficiency of MFI 47

Regression analysis of loan management on efficiency of MFI 48

Five FINDINGS, CONCLUSIONS, RECOMMENDATIONS 49

Findings 49

Conclusions 50

Recommendations 50

References 51

Appendices

Questionnaire 54

Transmittal letter for Supervisor 56

Transmittal letter from SPGSR 57

Requesting letter for GOSH EN FIANCE SA 58

Respondent letter from GOSHEN FINANCE SA 59

Requesting letter for CFE SA AGASEKE 60

Respondent letter from CFE SA AGASEKE 61

Researcher’s curriculum vitae 62