Browsing by Author "Merkuriaw, Meron"

Now showing 1 - 1 of 1
  • No Thumbnail Available
    Item
    Loan Provision, Degree of Collectiblity and Reason for Default: A Case Study in Wise Saving and Credit Cooperatives Union for Women
    (Addis Ababa University, 2008-01) Merkuriaw, Meron; Yitayew, Abebe (Associate Professor)
    This paper entitled “Loan Provision, Degree of Collectiblity and Reason for Default in case of WISE Saving and Credit Cooperatives Union for Women” examined the loan provision, collection procedures as well as the default rate of this SAC. Today a number of Saving and Credit Cooperatives(SACs) are established to give a saving and loan service to clients and much emphasis is given for those women who wants to run SME. WISE’s major clients are women who would have an impact on changing their own life as well as their families. The study attempted to identify and assess the loan provision criteria’s, collection procedures, the reason for default, the impact of interest on the cooperatives and clients, and last but not the least the benefits and challenges of the SAC under WISE. Data for the study was collected through questionnaire, interview and discussions with four cooperatives members and credit officers who are situated in Nefas Silk sub-city. Results of the study indicate that in order to give loan to a woman WISE have set criteria’s so as to decrease the default rate. A woman has to save money and has to provide a business plan in order to be given the requested loan, after being a member of the SACs. The study revealed that the level of education of the borrowers reduces the default rate in turn facilities heavily the collection procedures. The study also indicates that the interest charged has a great impact on clients which makes them to reduce the amount of loan they want to take