| dc.description.abstract | This paper sought to find out the impact of debt management policies on the quality of loans in
commercial banks in Uganda. The argument was built on the fact that debt management policies
such as collateral security, loan interest rate and credit counselling were put in place to control
the quality of loans in Centenary Bank, and so, bank officers as well as the clients must be able
to honour them so as to uphold the quality of loans set.
It was for this reason that i sought to find out: the impact of collateral security in ensuring the
quality of loans in commercial banks in Uganda, the impact of interest rates on the quality of
loans in commercial banks in Uganda and to examine the impact of the credit counseling on the
quality of loans in commercial banks in Uganda.
Literature review was discussed objectives by objectives and a questionnaire was used because it
was appropriate given the sample size of 55 respondents in their different capacities. The study
population was the staff of Centenary bank and her clients using a cross-sectional design with a
representative sample of respondents from both groups of people. This number was reliably large
enough to yield reliable data and to guard against non-responses.
Findings from the research revealed that: some clients’ collateral security is not audited, interest
rates are very high though affordable, there is ignorance of the bank rates by some clients, many
clients go for credit counselling much as others are forced to go for it, credit counselling has
helped the clients know the terms and conditions of the loans they would want.
The following recommendations were suggested: increase in the grace and payback period of the
loan according to the different loan amounts received from the bank, during the credit
counselling sessions, clients be informed of the interest rates, other debt management policies
such as debt restructuring and debt portfolio risks and liability management be introduced, more
credit counselling to the bank’s clients by the loans’ officers, interest rates be reduced to a
percentage that can best serve all persons, the loans’ officers should make sure that the collateral
security of all clients is properly audited. | en_US |
