TABLE OF CONTENT
Title
Organizational Chart ii
Map of Uganda showing Centenary Banks~ iii
Declaration IV
Approval v
Dedication vi
Acknowledgement vii
Operational Definitions viii
Table of Content ix
Abbreviations xii
List of tables/figures~ xiii
Abstract Xiv
CHAPTER ONE
1.0 Introduction I
1.1 Background to the study 1
1.2 Statement of the problem 3
1.3 Objectiveofthestudy 3
1.3.1 Purposeofthestudy 3
1.3.2 Specific Objectives 3
1.4 Research Questions 3
1.5 Scope of the study 4
1.6 Significance of the study 4
1.7 Conceptual Frame work 5
1.8 Hypothesis of the study 5
CHAPTER TWO
2.0 Literature Review 7
2.1 Introduction 7
2.2 Causes of poor loan Assessment and recovery 8
x
2.3 Issues that emerge as a result of poor loan Assessment and recovery .14
2.4 The management methods of loan recovery 14
2.5 The challenges faced by Banks in managing loan recovery 17
2.6 Benefits of loan scheme to borrowers 18
2.7 Effects of poor loan recovery to bankS 18
2.8 Proposed solution to poor loan assessment and recovery 20
CHAPTER THREE
3.0 Methodology 22
3.1 Introduction 22
3.2 Research Design 22
3.3 Study population 22
3.4 Sample selection and size 23
3.5 Research Instruments 23
3.6 Validity and reliability of the instruments 24
3.7 Data collection methods 24
3.8 Procedure of Data collection 24
3.9 Data processing and analysis 24
3.10 Limitation of the study 25
CHAPTER FOUR
4.0 Introduction 27
4.1 Demographic characteristic of respondents 27
4.2 Conclusion 39
CHAPTER FIVE
5.0 Discussion, Conclusion and Recommendation 40
5.1 Introduction 40
5.2 Discussions 40
5.3 Conclusions 41
5.4 Recommendations~ 42
xi
5.5 Areas of further research’ 43
References’ 44
Appendix
Appendix A: Data Collection Instruments’ 47
Instruments No. 1: Interview Guide’ 48
Instrument No. 2: Questionnaires 50
Estimated Budget 51
Time Frame’ 52
ABSTRACT This study focused on the methods of loan recovery and management on rural Credit: A case of Centenary Bank Limited — Lira. It covered the loan beneficiaries, non beneficiaries, Bank staff, local leaders and some opinion leaders, Its specific objectives includes establishing the causes of loan default, examining relative return of the methods used and examining the limitation of the management methods used in loan recovery. The data was collected using both quantitative and qualitative data collection methods by using questionnaires, interviews and focus group discussion. The data was then statistically analyzed using Statistical Packages for Social Scientist (SPSS). The findings revealed that the interest rate charge by the bank to borrows were very high, there was improvement in the utilization of loans obtained by borrowers however, it was also observed that some people failed to pay back the loan because of misappropriation of loan borrowed from bank, natural calamities and high interest rate charge by Centenary bank as well as bad culture of not paying back even if they get profit from the loan borrowed. Therefore, to enhance repayment rate, the bank should encourage group borrowing and sensitized the loan beneficiaries on utilization and repayment of the loan borrowed.
