|dc.identifier.citation||Kyoribona, Mark (2013)The effects of Loan Terms on Loan Repayment in Uganda: A case study of Pride Micro-finance Mbarara District||en_US
|dc.description.abstract||The study was conducted to establish the effects of loan terms on loan repayment in Mbarara
District. The researcher was motivated to find out why MFIs continued to register default yet with
loan terms in place. The effectiveness of collateral security, interest rate and loan period in
mitigating default were evaluated during the study to provide a basis upon which more credit
interventions would be based. Pride Microfinance was taken as a case study. The study was guided
by the Grameen theory of Lending and the Basely and Coate Repayment model.
Case study design was adopted to allow for intensive investigation of specific details. Both
qualitative and quantitative approaches were employed during data collection and analysis.
Validity and reliability of findings were adequately guaranteed using experts in the field of
Microfinance and via pilot tests. Questionnaires, interviews and documentary review methods
were used during data collection while analysis was done both qualitatively and quantitatively to
obtain greater insight of the problem. A sample of 96 respondents was considered adequate to meet
the study objectives. A response rate of 92.7% was good enough to provide dependable results.
Descriptive statistics such as mean and standard deviation were obtained.
Findings revealed existence of a high need for PML management to realign their interest rates to
meet the market standards but more so the need to sensitize borrowers to enable them appreciate
the rates charged. Besides, Loan periods at PML were found not to be in respect of borrowers’
income sources, business cycles, cash flows and requests leading to repayment constraints. In
addition, it was revealed that collateral security was largely for formality as loss rated and written
off loans had not been recovered yet collateral pledged was still in existence. To enhance
borrowers’ self accountability, the researcher concluded that PML ought to invest heavily in
sensitizing its customers about the loan terms prior to loan disbursement.||en_US
|dc.publisher||Uganda Management Institute||en_US
|dc.subject||Loan Terms and Repayment||en_US
|dc.title||The effects of Loan Terms on Loan Repayment in Uganda: A case study of Pride Micro-finance Mbarara District||en_US