Vol. 1 No. 1 (2020): Vol 1, Iss 1, Year 2020
Articles

The contribution of loan management on the financial performance of umurenge savings and credits cooperatives in rwanda

Alphonse Nsengiyumva
Jean Bosco Harelimana, Institut d’Enseignement Superieur de Ruhengeri, Musanze, Rwanda,
Jean Bosco Harelimana
Jean Bosco Harelimana, Institut d’Enseignement Superieur de Ruhengeri, Musanze, Rwanda,
Published February 20, 2020
Keywords
  • Savings and credit cooperatives, loan management procedures and micro finance financial performance.
How to Cite
Nsengiyumva, A., & Harelimana, J. B. (2020). The contribution of loan management on the financial performance of umurenge savings and credits cooperatives in rwanda. Journal of Management and Science, 1(1), 64-86. https://doi.org/10.26524/jms.2020.8

Abstract

The study analyzed the contribution of loan management on the financial performance of Umurenge Savings and Credit Cooperatives in Rwanda. The study adopted the use of descriptive survey using both qualitative and quantitative methods for a total sample size of 78 clients who have received more than two times the loan. Purposive and simple random sampling was used for this purpose. Primary and secondary data were collected and then analyzed. The study found that loan management determinants used such as membership enrolment, client appraisal, credit risk control and collection policy impact on financial performance respectively at 23,9%; 24,1%; 39,2 % ; 28,4%.Loan management practices have a high influence on the SACCO’s financial performance during the five years.The correlation results imply that suitable loan management in a saving and credit institution has a positive impact on financial sustainability and profitability and on financial efficiency and productivity as they move in the same direction (R=0.980).

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