ASSESSMENT OF FACTORS AFFECTING LOAN COLLECTION PERFORMANCE ON OMO MICRO FINANCE INSTITUTIN IN WOLKITE TOWN

Abstract

Omo micro finance institutions have a significant role for the development of one’s country economic development by providing a credit and also a saving service for those productive clients. Though there are many factors that can affect the efficiency of the institution like, loan management and processing system, cash management, and loan collection performance. This study was conducted with the aim of analyzing the factors that influence omo micro finance loan collection performance, specifically in guraghe omo MFIS in Wolkite town using primary data collected through self-administered questionnaire. This study intends to assess the factors affecting loan collection performance of the employee’s Wolkite omo MFIS of in order to a chive to this objectives, the study was adopted mixed research approach. The total numbers of the study are 21 employees (female 13 and male 8) and primary data were collected 11 employee from the institution holding different positions selected through purposive/judgment sampling techniques using a self-administered questionnaire. Moreover secondary data were obtained from the annual financial report of Wolkite omo MFIS. For the data analysis, descriptive statistics including table and percentage would be used to assess or described that influencing collection rate. For this study the descriptive design type is used. The finding of the study shows that credit term credit monitoring, collateral and loan supervision by the institution assign at the causes of nonperforming loan