Partial Fulfillment of the Requirements for the Award of Bachelor in Accounting and Finance in Public Sector (BAF-PS) of Mzumbe University.The general objective of the study was to examine problems facing commercial banks in Tanzania during the loan recovery process. The focus is on the management of the risks involved during loan recovery and reduces these risks to be the barest minimum since it is inevitable The study was conducted at CRDB Bank Plc Sumbawanga branch in the Rukwa region. The purpose of this study was to investigate problems facing commercial banks in Tanzania with specific reference to CRDB Bank plc. The study achieved its purpose through three objectives The study also takes a look at the review of the relevant literature, which is the theoretical as well as empirical reviews on analysis and underlines principles of bank credits. Obashore (1985), and Jonathan Golin and Philippe Delhaise (2013), explained that ‘’ Loan and Advances are important to banks because they account for a large proportion of their income’’ The study included staff of CRDB Bank Plc which includes Credit Administrators and Relationship Managers within the Sumbawanga Branch and clients categories of loan recovery . The target sample included 30 respondents. The research design used was descriptive statistics. The study reviewed relevant literature to establish a gap in which the research fulfilled. Methods of collecting data were questionnaires, interviews, . The data was processed and analyzed by using both qualitative and quantitative methods. Finally based on the major findings on this research, and the need to reduce the attendants’ problem on loan, the recommendations made include, Proper implementation of the failed bank decree without favoritism on part of tribunal in discharging their duties. Bank of Tanzania should improve its supervision and examinations of banks. Banks should have good quality risk analysis, effective credit control, and close supervision on disbursement and also banks should employee a proffetional lawyer.