Credit management and performance of selected saying and Credit cooperative societies in Ntungamo district

Abstract

The study was centred on Credit Management and Performance of selected Savings and Credit Cooperative Societies in Ntugamo District. The study identified that many SACCOs have a problem with the management of credit and this has a direct bearing on the performance of an organization. The stud) ''as guided by three specific objectives that is: to establish the relationship between credit terms and the performance of selected SACCOs, to determine the relationship between credit period and the performance of SACCOs and to examine the relationship between credit limit and the performance of SACCOs. The study employed a cross-sectional survey design to enable the researcher to collect data on selected SACCOs in Ntungamo Di strict only once during the data collection period. The study used questionnaires, interviews, and the sample size was 151. The findings of the study indicate that there is a very strong positive relationship between cred it terms and performance of selected SACCOs in Ntungamo District. It was highlighted that there is a moderately positive relationship between credit period and performance of selected SACCOs in Ntungamo District. Thus, there is a strong positive relationship between cred it limits and performance of SACCOs. It can therefore be concluded that effective management of credit has a direct bearing on the performance of SACCOs in Ntungamo District. On the basis of the study findings, it is recommended that the management of SACCOs should review the credit terms, credit period and credit limits in line with the environmental changes such as economic, legal, political and social aspects to stimulate the performance of their SACCOs.