ASSESSMENT OF LOAN REPAYMENT PERFORMANCE IN ADDIS CREDIT AND SAVING INSTITUTION IN CASE OF ARADA BRANCH

Abstract

The study was to assess the loan repayment performance of Addis credit and saving institutions. And also to assess factors of loan repayment performance of Addis credit and saving institution. So, this research employs descriptive research design. The study was conducted by taking a sample of 384 respondents by judgmental sampling technique. ADCSI’s loan repayment performances are primarily affected by the loan size, when the loan size is high the borrowers are losing their confidence to repay the loan. The other factors are political crisis. ADCSI supervise and follow up over their loan utilization, majority of members are getting supervision and advice about the lending and usage of money monthly. ADCSI’s Recovery of a loan is responsible members of managing committee and office with the help of well experienced professionals. All outstanding loans should be reviewed at least once a month to ensure that repayments are being made regularly. ADCSI’s supervision and follow up is low and it has to improve its supervision and follow up rates cause’s inappropriate use of loan and high loan default rate. It is essential for ADCSI in order to control the loan repayment performance and increases the income of the institution.