Open AccessThe contribution of loan management on the financial performance of umurenge savings and credits cooperatives in rwanda
Author(s) -
Alphonse Nsengiyumva,
Jean Bosco Harelimana
Publication year - 2020
Publication title -
journal of management and science
Language(s) - English
Resource type - Journals
eISSN - 2250-1819
pISSN - 2249-1260
DOI - 10.26524/jms.2020.8
Subject(s) - loan , nonprobability sampling , simple random sample , business , profitability index , finance , financial institution , financial management , sample (material) , descriptive statistics , actuarial science , statistics , population , chemistry , demography , mathematics , chromatography , sociology
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).