Browsing by Author "Gideon, Steven"

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    An assessment of commercial banks’ credit policy and procedures for SMEs access to finance: the case of national microfinance bank (NMB)
    (University of Dar es Salaam, 2010) Gideon, Steven
    The objective of this study was to assess commercial banks’ credit policy and procedures for SMEs access to finance in a certain exemplar commercial bank in Tanzanian named NMB. Data were collected using a combination of techniques namely; Interviews, documents review methods and questionnaire with open and close questions. Sixty five respondents participated in this study. These were drawn from SMEs and employees served by NMB bank in Arusha and Kilimanjaro regions. Both qualitative and quantitative methods were used in data analysis. Quantitative data were analyzed through SPSS while qualitative data were synthesized and reduced into short frequency, table/figures for easy analysis and interpretation. The key finding reveals that collateral, loan size limit, eligibility and interest as the most loan terms and condition that affect SMEs access to finance. Interest rates were found to be fair compared to other bank and collateral to be favorable to micro enterprises than small and medium. Also the study found compositions/types of loan products and experience (skills and competency) of loan officer insufficient for SMEs access to finance. Loan repayment was found favorable and acceptable for SMEs accessing finance. Generally study concluded that composition of loan products, collateral, loan size limit and loan officer skills as some of the main issues concerning CBs’ credit policy and procedures that needed to be addressed or rechecked to enhance SMEs access to finance. The study recommended that symbiotic relationship between government, SMEs and CBs is needed as a powerful tool in promoting SMEs access to finance.