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The study aimed at assessing the impacts of socio-economic factors on loan repayment performance, with a case study of CRDB and ACB bank clients in Mwanza.Specifically, the research aimed at examining loan repayment performance at CRDB and ACB bank in Nyerere Branch Mwanza, also to identify the social factors affecting loan performance at CRDB and ACB bank in Nyerere Branch Mwanza. And to examine the effects associated with poor bank loan repayment to CRDB and ACB bank in Nyerere Branch Mwanza.
A simple random sampling technique was applied in obtaining the sample size, a total of 146 respondents were involved in the study. Both primary and secondary data were used in the research while questionnaires scripts were distributed as tool of obtaining information from the respondents. The findings from the study revealed that there is a significant relationship between business characteristics (including size, age and location) and loan repayment among customers among the CRDB and ACB bank Nyerere Branch in Mwanza. The study also found that there is a significant relationship between individual borrowers’ factors (including the education level, age and experience in borrowing) and the loan repayment among customers of CRDB and ACB bank in Nyerere Branch. Moreover, the study has found that there is a significant relationship between loan factors (interest rate, loan amount and collateral) and the loan repayment among customers in Nyerere Branch.
Based on findings, recommendations were set forth, the researcher recommended that business banks need compulsory supervision of the borrowers on advance use and reimbursement. Such supervision was empowering business banks to screen the execution of borrowers nearly. Additionally, preparing of borrowers previously, then after the fact accepting credits ought to be finished concentrating on regions, for example, business administration, accounting and investment funds. Such measures were cutting down default rates. The bank should screen the borrowers and select the "great" borrowers from the "terrible" borrowers and screen the borrowers to ensure that they utilize the advances for the expected reason. This is vital to ensure that the borrowers can pay back their credits. |
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