An examination of the effect of loan interest rates to smes’ performance and growth in Tanga City: A case of vision fund Tanzania

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dc.contributor.authorMsangula, Leah Yesaya
dc.date.accessioned2024-10-31T10:05:30Z
dc.date.available2024-10-31T10:05:30Z
dc.date.issued2015
dc.descriptionA dissertation submitted in partial fulfillment of the requirements for award of the degree of Masters of Business Administration in Corporate Management (CM) of Mzumbe University
dc.description.abstractThis study was carried out to examine effect of loan interest rates on SMEs‟ performance and growth with focus to customers who receives Vision Funds‟ loan services Tanga branch. Data for the study was collected from 83 respondents using structured questionnaire. Both qualitative and quantitative methods were used to analyze the data. The result of the study has revealed loan interest rates to have effect on SMEs‟ performance and growth; which is presented by majority 68.7 percent who had yes response. This particular response is further supported by 44.6 percent who reported to experience slow growth of business capital and 39.8 percent who responded to have continued operating on less profit respectively. However, a slow growth of business capital is explained as the decision of loan seeker opting to take small loan amount from the fear of paying more money charged on interest rate. Nevertheless, price fluctuation, business seasonality and economic hardship were emerged other factors challenged their business performance. Analysis has revealed growth of business capital, creation of business assets and increase of income. This improvement has been an opportunity to open up new business which is observed by 47 percent. Moreover, an experience of 13 years in microfinance services, the charged interest rate has been relatively high compared to other loan providers and no change (36 percent annually has been maintained) is being effected despite the need to improve loan services. All in all, however, loans services remains facilitative to business operation as it open up opportunities/doors for self employment. Loan services have been helpful. Business capital has increased, new businesses were established, and foremost, the capacity to attain social and economic services provision to families has improved. It was learnt that, clients have had receiving multiple loans (loaning among institutions) where it was so challenging in paying back the granted loan. Therefore, a similar study should be undertaken in other areas to ascertain the extent of applicability of the findings of this study.
dc.description.sponsorshipPrivate
dc.identifier.citationAPA
dc.identifier.urihttps://scholar.mzumbe.ac.tz/handle/123456789/1617
dc.language.isoen
dc.publisherMzumbe University
dc.subjectLoan interest
dc.subjectRates on SMEs
dc.subjectBusiness capital
dc.titleAn examination of the effect of loan interest rates to smes’ performance and growth in Tanga City: A case of vision fund Tanzania
dc.typeImage
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