| dc.description.abstract | The aim of this study was to investigate the relationship between credit risk management on loan
performance in micro finance institutions. It was guided by three objectives, to examine the
effect of credit appraisal on loan performance in Burunga Microfinance, to assess the effect of
credit administration on loan performance in Burunga Microfinance, to establish the effect of
credit monitoring and loan performance in Burunga Microfinance.
The study employed a case study design and qualitative and quantitative approaches were used.
This study was conducted among the employees of Burunga Microfinance in Kiruhura District, a
simple random and stratified sampling techniques were used. Data was analyzed using SPSS
version 21 and it was presented in form of tables, charts and it was described to give the
necessary meaning of the figures there in.
The findings revealed that credit appraisal, credit administration and credit monitoring all affect
loan performance if micro financial institution.
The researcher recommended that, before extending a loan to borrowers through loan appraisal
should be carried out especially to new clients, credit administration department should be more
vigilant and come up with control measures related to lending risks, financial institutions should
ensure that after disbursing loans they should carry out the necessary monitoring so as to find out
how the loans given out are being used by borrowers. | en_US |
