Factors affecting loan performance: A case study of CRDB Bank Plc in Mwanza Region

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Date
2014
Journal Title
Journal ISSN
Volume Title
Publisher
Mzumbe University
Abstract
The research was carried out to study the factors affecting loan performance in financial institutions in Tanzania, specifically, the researcher sought to establish the effects of collection policy, credit terms, client appraisal and credit risk. A case study of CRDB bank in Mwanza region. This study used data collected from both primary and secondary data source. The methods of data collection used were interview, observation, questionnaires, and documentary review that were used to analyze data from purposive and simple random sampling of 30 sample sizes. The interpretation of data collected was analyzed by using a computer program known as program of Statistical Package for Social Sciences (SPSS). The main variables taken into consideration were credit terms, collection policy, client appraisal and credit terms. The researcher adopted qualitative and quantitative research designs. The respondents were the CRDB bank staff and the bank borrowers of Mwanza region. Collection policy and credit terms were found to have a high statistical significance with loan performance of a financial institution. Further research is recommended on the effects of customer training in loan performance, assessment of the effects of economic downturn in loan performance, and other factors that affects loan performance in financial institutions such as political consideration, environmental and prevailing economic change
Description
A research report submitted for the partial fulfillment of the requirements for the award of the Masters of Science in Accounting and Finance at Mzumbe University
Keywords
Loan performance, Collection policy - CRDB bank, Credit risk, Client appraisal
Citation
APA