ASSESSMENT OF CREDIT MANAGEMENT IN MICROFINANCE INSTITUTIONS

Abstract

Credit management is a means by which an institution manages its credit transaction and a prerequisite for any institutions dealing with credit transactions in view of the fact that is not possible to have default risk. The general objective of this research is to assess credit management of Specialized Financial Promotional Institution( Micro finance institution ).The researcher used quantitative data to show the frequencies and percentages assessment of credit management process and the qualitative data to show respondents perceptions. The researcher used primary data with a questionnaire were administered to collect the data from the aspects of lenders expertise and department managers and secondary data from different literature review. All total population 24 was used for investigation. The finding suggested that there were some difficulties of credit management process such as client screening, formal credit evaluation of assessment process, loan collection method, credit history management, customers capacity and capital, non performing loan and interest rate problems.