Browsing by Author "Josiah, Stanly"

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    Repayment performance of bank loan beneficiaries under credit guarantee scheme in Tanzania: the case of CRDB Bank Plc
    (University of Dar es Salaam, 2009) Josiah, Stanly
    There are notable bank loan defaults among beneficiaries of credit guarantee scheme in Tanzania despite incentive that is provided by both government and donor agency in guaranteeing those borrowers. It is therefore the objective of this study to evaluate, the relative importance of various factors that affect repayment performance of Bank Loan Beneficiaries Credit Guarantee Scheme in Tanzania. The study specifically covered Private Agricultural Sectoral Support Credit Guarantee Scheme (PASS CGS) and CRDB Bank Plc as case study because of its representation of the larger portion of guaranteed borrowers in Tanzania. Both Primary and Secondary data was collected by using questionnaire and from customer files. In depth interviews were administered to lending staffs as well as to customers. The collected data was analyzed using the statistical package for social science and results were analyzed in tables and charts. Generally, the study found out that bank loan default among beneficiaries of Credit Guarantee schemes is caused by various factors, the most important factors are: fund diversion, Will default and variability in incomes from agricultural enterprise. It is therefore recommended that in on order to minimize bank loan default among beneficiaries of Credit Guarantee Schemes in Tanzania deliberate measures should be taken like: sensitizing borrowers’ importance of loan repayment and banks should adhere to terms and conditions stipulated in loan agreement.