Loan portfolio management and the performance of SACCOS:

Abstract

The study was about Loan Portfolio Management and the Performance of Savings and Credit Cooperative Societies using HOFOKAM SACCO Kasese branch in Kasese District. The study was aimed at finding out the relationship between Loan Portfolio Management and the performance of SACCOs. The study objectives that the researcher used to come up with the study findings were, To establish the relationship between loan planning and the Performance of SACCOs, To examine the relationship of client screening and the Performance of SACCOs and then To determine how portfolio control affects the Performance of SACCOs. The researcher adopted a case study design that was descriptive in nature. The study population comprised primarily of HOFOKAM clients and employees. However, due to time limitation, the researcher used a population of 75 respondents with a sample of 63 though HOFOKAM has a large number of population compared to the study population. Questionnaire and documentary review were the data collection methods used for the study. Data was analyzed using SPSS program to generate statistics based on frequencies and percentage. The findings indicated that there was a relationship between Loan Portfolio Management and the performance of SACCOs. The findings further revealed that Loan Portfolio Management has led to improved performance of most SACCOs in Uganda by enabling the financial institutions to expand and increase their profits, given the fact that profitability has been the main goal of the SACCOs which enables them to sustain their clients financially for a long period. The financial institutions unions should thus endeavor to educate the employees and clients of SACCOs on the different loan portfolio management procedures and how such procedures can be used by the SACCO in order to avoid loan mismanagement and hence default risk avoidance