Loan Provision Degree Of Collectiblity And Reason For Default A Case Study In Wise Saving And Credit Cooperatives Union For Women

This paper entitled “Loan Provision, Degree of Collectiblity and Reason for Default inrncase of WISE Saving and Credit Cooperatives Union for Women” examined the loanrnprovision, collection procedures as well as the default rate of this SAC.rnToday a number of Saving and Credit Cooperatives(SACs) are established to give arnsaving and loan service to clients and much emphasis is given for those women whornwants to run SME. WISE’s major clients are women who would have an impact onrnchanging their own life as well as their families. The study attempted to identify andrnassess the loan provision criteria’s, collection procedures, the reason for default, thernimpact of interest on the cooperatives and clients, and last but not the least the benefitsrnand challenges of the SAC under WISE.rnData for the study was collected through questionnaire, interview and discussions withrnfour cooperatives members and credit officers who are situated in Nefas Silk sub-city.rnResults of the study indicate that in order to give loan to a woman WISE have setrncriteria’s so as to decrease the default rate. A woman has to save money and has tornprovide a business plan in order to be given the requested loan, after being a member ofrnthe SACs. The study revealed that the level of education of the borrowers reduces therndefault rate in turn facilities heavily the collection procedures. The study also indicatesrnthat the interest charged has a great impact on clients which makes them to reduce thernamount of loan they want to take

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