The research was carried out to assess loan recovery and credit policy of clients of Micro
Finance Institutions, with Foundation for International Community Assistance (FINCA)
as a case study. The researcher decided to carry out this study because of reported decline
in loan recovery ofFINCA's clients as a result of high interest rates charged on the loans.
This study is therefore to investigate the credit policy of MFI' s.
A survey research design was used in an effort to describe events and explain the
relationship between loan recovery and credit policy of clients ofMFI's. The respondents
were selected using random sampling and the major instrument used for data collection
was a questionnaire. The questionnaire was distributed to staff and clients of FIN CA.
The findings showed 35 respondents representing 77.8% of the sample size. The socioDemographic
characteristics of the respondents were investigated. Majority of the
respondents were found to be female as compared to men counter patis. Any one can be
offered a loan regardless of sex. Marital status was investigated it was found out that the
married were more as compared to others.
Majority of the respondents were between age brackets 31-40. Most of them had
acquired loan from FINCA. The education background showed that the majority had
acquired formal education at least to primary level. However there was a problem in
interpreting the questionnaires given to them.
In conclusion, the findings confirmed that there is a positive correlation between credit
policy and loan recovery of FINCA. The study therefore recommended that in order to
attain good performance of loan recovery will depend on the availability of good credit
policy techniques applied.
SSA, R (2021). Loan Recovery And Credit Policy In Microfinance Institutions. A Case Study: Finca, Buganda Road Branch, Kampala, Uganda. Afribary.com: Retrieved June 19, 2021, from https://afribary.com/works/loan-recovery-and-credit-policy-in-microfinance-institutions-a-case-study-finca-buganda-road-branch-kampala-uganda
Research, SSA. "Loan Recovery And Credit Policy In Microfinance Institutions. A Case Study: Finca, Buganda Road Branch, Kampala, Uganda" Afribary.com. Afribary.com, 04 Jun. 2021, https://afribary.com/works/loan-recovery-and-credit-policy-in-microfinance-institutions-a-case-study-finca-buganda-road-branch-kampala-uganda . Accessed 19 Jun. 2021.
Research, SSA. "Loan Recovery And Credit Policy In Microfinance Institutions. A Case Study: Finca, Buganda Road Branch, Kampala, Uganda". Afribary.com, Afribary.com, 04 Jun. 2021. Web. 19 Jun. 2021. < https://afribary.com/works/loan-recovery-and-credit-policy-in-microfinance-institutions-a-case-study-finca-buganda-road-branch-kampala-uganda >.
Research, SSA. "Loan Recovery And Credit Policy In Microfinance Institutions. A Case Study: Finca, Buganda Road Branch, Kampala, Uganda" Afribary.com (2021). Accessed June 19, 2021. https://afribary.com/works/loan-recovery-and-credit-policy-in-microfinance-institutions-a-case-study-finca-buganda-road-branch-kampala-uganda