ASSESSMENT OF CREDIT MANAGEMENT IN MICRO FINANCE INSTITUTIONS (A Case Study on Meklite Branch)

Abstract

This study was conduction the title of assessment of credit management in micro finance institutions in maklite credit and saving Share Company at maklite branch with primary objective of examine the credit management on micro finance institution at branch level. In this study both primary and secondary source of data used and the researcher would be use open end and close questionnaires and structured interview to collect data from the employee, customers and management body of the institutions and was use convenience non probability technique to select customers and census technique to select target population among employee and management body of maklite credit and saving Share Company. And also, the researcher used descriptive method of data analyzing. The analysis of the data revealed that, there is problem in group borrowing methodology, the institution doesn’t collect its credit on specified period, rather they mostly after the due date and also the repayment period is not suitable. Therefore, the institute is advised to create awareness to the customer, about the time value of money and to improve the repayment period.