The main purpose of carrying out this study was to examine the effect of loan recovery on
the performance of microfinance institutions in Uganda. The study based on the following
objectives which aimed at examining the methods used in loan recovery by Microfinance
institutions in Uganda, establish the degree of loan recovery towards the performance of
".icrofinance institutions and find out the relationship loan recovery and performance
Microfinance institutions (Opportunity Bank Uganda; Gayaza Branch).
The study was descriptive in nature where the researcher described the relationship between
loan recovery and performance in form of highlighting on some of the desired attributes of
financial services, products and analytical by looking for gaps that existed and suggested the
possible remedies whereby, a total of 50 respondents were selected to participate in the study.
The procedure design, was purposive sampling techniques. The technique was preferred
because of the categories of respondents. After data processing, quantitative data analysis
,-;as carried out by the use of different methods such as single frequency tables, pie charts
and graphs by the support of Microsoft Excel.
The major findings revealed that the majority of respondents said that loan security is mostly
considered when addressing the challenges of loan recovery. This is because clients are
supposed to surrender· a security in order to obtain a loan from these financial institutions
while there are other methods used in loan recovery for example credit rationing, loan
syndication, credit worthiness, etc, therefore banks also set actions to be considered in loan
:~ was recommended that product package and delivery should be the one to keep
Opportunity Uganda in this error of competition, despite other competitors in the district,
which range from banks, MFis and NGOs which are also offering financial services.
Furthermore, microfinance institutions in the area will not be the only a solution for each and
every problem in Nansana but a Combination of several players like government, NGOs,
churches who put their hands together to achieve clients welfare. The researcher recommends
that more research should be conducted to further findings of this study using other
methodologies like the relationship between loan processing and the growth of MFis as well debt recovery and the profitability of borrowers.
SSA, R (2021). The Effect Of Loan Recovery On The Performance Of Microfinance Institutions In Uganda A Case Study Of Opportunity Bank Gayazabranch. Afribary.com: Retrieved June 24, 2021, from https://afribary.com/works/the-effect-of-loan-recovery-on-the-performance-of-microfinance-institutions-in-uganda-a-case-study-of-opportunity-bank-gayazabranch
Research, SSA. "The Effect Of Loan Recovery On The Performance Of Microfinance Institutions In Uganda A Case Study Of Opportunity Bank Gayazabranch" Afribary.com. Afribary.com, 04 Jun. 2021, https://afribary.com/works/the-effect-of-loan-recovery-on-the-performance-of-microfinance-institutions-in-uganda-a-case-study-of-opportunity-bank-gayazabranch . Accessed 24 Jun. 2021.
Research, SSA. "The Effect Of Loan Recovery On The Performance Of Microfinance Institutions In Uganda A Case Study Of Opportunity Bank Gayazabranch". Afribary.com, Afribary.com, 04 Jun. 2021. Web. 24 Jun. 2021. < https://afribary.com/works/the-effect-of-loan-recovery-on-the-performance-of-microfinance-institutions-in-uganda-a-case-study-of-opportunity-bank-gayazabranch >.
Research, SSA. "The Effect Of Loan Recovery On The Performance Of Microfinance Institutions In Uganda A Case Study Of Opportunity Bank Gayazabranch" Afribary.com (2021). Accessed June 24, 2021. https://afribary.com/works/the-effect-of-loan-recovery-on-the-performance-of-microfinance-institutions-in-uganda-a-case-study-of-opportunity-bank-gayazabranch