THE ASESSEMENT OF FACTOR AFECTING CREDIT MANAGEMENT OF METEMAMENT MICRO FINANCE INSTITUTION (THE CASE STUDY OF WOLKITE BRANCH)

Abstract

This study was conducted on the title of assessment of factor affecting credit management ofmetemamen micro finance institutions in Wolkite branch. For the achievement of the objective of the study qualitative research approach particularly survey design was used. In this study primary source of data was used and the researcher would be using questionnaires to collect data from the employee, and management body of the institutions. The census method was used to collect data from employee and management body of metemamen credit and micro finance institution. And also the researcher would be used descriptive method of data analyzing. The general objective of the study is to assess factors that affect the credit management in micro finance institution of metemamen in Wolkite branch. The specific objectives of the study are the activities practiced credit management of the institution, the methods of the institution uses to follow up loan, the effectiveness of polices and procedure the institution follows in providing loans, the monitoring mechanism used by the institutions to collect credit. Metemamen micro finance has a variety of policy, procedure of loan repayment in order to overcome their risk. As respondents response however there are some problems related with collections of credit given to borrowers and any other related with it. To increase high quality of credit management, metemamen should give training for their worker on the areas of granting loan and collecting it. In addition thus metemamen micro finance institutions and government should take a corrective measurement in order to reduce credit risk management in metemamen micro finance institutions.