ABSTRACT The objective of this study was to examine the causes that lead to late loan repayment in Mwanza Saving and Credit Cooperative Society. Specifically the study described factors that lead to late loan repayments and recommends the preventive strategies to be used by SACCOS as soon as any repayment falls late. This study was guided by group theory which views formation of group as highly needed as means for channeling the finance needed for the individual micro enterprises and induce members to repay their loans early when they fall due. The study used both qualitative and quantitative techniques to determine factors for late loan repayments and preventive strategies adopted by SACCOS in dealing with matter related to late repayments. Questionnaires and interviews guides were the instruments used for data collection purposes. The study established the main factors for late loan repayment as: inadequate loan follow up team by the management, inadequate collateral verifications, overcapitalization of members’ projects, members’ failure to honor their obligations, insider dealings, bad repayment system, lack of incentives to members who repay the loan earlier and ignorance of some members on how to use the loan. The preventive strategies adopted by Mwanza SACCOS are: closely visiting of members’ ventures, conduct of seminars and work-shop on how to utilize funds, free educate members on loan repayment system, on line calling or sending messages as means to remind them to make repayment and take some disciplinary measures to members who fail to return back their loan. It is recommended that management of Mwanza SACCOS should ensure that they create a proper loan management follow up team that will help to reduce late loan repayment, organize good incentive strategies that will encourage members to repay earlier, employ high qualified personnel with financial management skills, educate members on how to use the loan, encourage the members to increase their savings and formulate a multiple source of finance rather than depending on members’ savings. Also the government should help SACCOS through formulating flexible and supportive policies that will help to minimize late loan repayment problems throughout the country.