ASSESSMENT OF CREDT MANAGEMENT PRACTICE IN (A CASE STUDY OF AGGAR MICRO FINANCE INSTITUATION IN WLKITE TOWN)

Abstract

My study assessed the credit management practices at aggar micro finance institution in Wolkite town and their effect on performance. The main objectives of the study were to identify the credit management practices at Aggar micro finace institution and their effect on performance. The descriptive survey method was used for the study. The sample size comprised of 12 respondents who were purposively selected in order to obtain the kind of data that was required for the study. Questionnaires were distributed in order to gather the primary data together with an interview guide.The analysis of the data revealed that the institution doesn’t collect its credit on specified period, rather they mostly after the due date and also there are clients with default. Therefore, the institution is advised to create awareness to the customer, about how to use the money and the management. Based on the collected data possible solution and recommendation were suggested to improve credit management practice of Aggar micro finance institution.