Malundila, Farida Msham2024-05-092024-05-092014APAhttps://scholar.mzumbe.ac.tz/handle/123456789/735A dissertation submitted in partial fulfillment of the requirement for award of the Degree of Masters of Marketing Management of Mzumbe UniversityThis study investigated factors which contribute to loan delinquency among small and medium micro enterprises financial institutions in Tanzania. National Microfinance Bank (NMB) was a case study. The data for the study were collected from 35 clients of NMB who received loans from the bank. In addition, 18 NMB staff working in the credits departments provided information on specific aspects deemed important for the study. Two sets of questionnaires were constructed one set for clients and other for NMB staff working in loan department. The collected data were analysed using the Statistical Package for the Social Sciences (SPSS) version 12.0. Frequencies and their corresponding percentages were used to detect patterns of attributes of interest in the study. The Chi-square test of independence of variables was used to ascertain the independence of key variables. It is revealed that the most common borrowers from the bank are those aged between 30-40 years (60%) and employed in the informal sector (60%). It is revealed further that use of loan proceeds contrary to loan agreement is a major factor for loan delinquency among borrowers. Those who reported using their loan proceeds outside the agreement were more likely to delay payment of their loan installments in due course (P<0.001). NMB often attach more importance to loan screening than to monitoring the use of credit. Proper documentation on customers’ files is done and use of strong collateral which means collateral must be of high value than a loan given to customer. It is recommended that in order to achieve a significant reduction in loan delinquency, the bank’s screening process particularly with regards to the nature of business, likely returns to the business, other sources of income to finance social or unforeseen events that are likely to interfere the development of the business.enMicrofinanceNational. Microfinance BankLoan delinquencyThesis