ASSESSEMENT OF NON PERFORMING LOAN ON THE PROFITABLITY OF MICRO FINANCE INSTITUTIONS (IN CASE OF METEMEMAN IN MICRO FINANCE)

Abstract

This study would be conduct on the title of assessment of non-performing loan in micro finance institutions in metemamen micro finance. 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 to analyses the assessment of non-performing loan, to assess the technique, used by institution to manage non performing loan.to analysis the main reason a loan become non performing. To assess after credit provision. In this study both primary source of data was used and the researcher would be used open end and close questionnaires and structured interview to collect data from the employee, customers and management body of the institutions and purposive method was used to collect data from employee and management body of metemamen credit and micro finance institution. And also the researcher was used descriptive method of data analyzing. The general objective of the study is to investigate factors that affect the credit management in micro finance institution of metemamen in wolkite branch. Longitudinal design is employed for a data collection and analysis purpose. The sample would be use selected by purposive sampling selection techniques. There are some problems related with collections of credit given to borrowers and any other related with it. Thus microfinance institutions and government should take a corrective measurement in order to reduce credit risk management in metemamen micro finance institutions