Browsing by Author "Ngowi, Bibiana Emili"

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    The effect of multiple borrowing on loan repayment in Tanzania: a case of finca and pride microfinance service providers
    (University of Dar es Salaam, 2013) Ngowi, Bibiana Emili
    The study examined the effects of multiple borrowing on loan repayments among MFIs clients in Tanzania. A sample of 120 respondents was selected from both MFIs and clients based in Dar es Salaam where purposive and convenient sampling techniques were used to obtain respondents. Data were collected using questionnaires and analyzed qualitatively and quantitatively. Statistical Package for Social Sciences (SPSS) software was used in analyzing the data. The study found poor screening and monitoring, lack of well-functioning credit bureaus in the country, competitive environment which caused rivalry amongst firms and poor information sharing of client loan repayments records were major operational environment related reasons for multiple borrowing. Motives behind multiple loan borrowing were found to be mismatch between the size of the loan and the business/personal needs of the clients, lack of financial sense or the clients’ oversight, risk seeking behavior of the clients and MFIs, loan recycling and family obligations. Also, the study found that drop in savings to clients, over indebtedness among the MFIs clients and in ability of loan repayment among of the clients was found to be core effects of multiple loans borrowing to clients of MFIs. In order to control the incidences of multiple borrowing the study recommends that MFIs should devise a way of sharing clients’ loan information. In addition, MFIs should provide adequate loans so as to avoid the practice of clients to reapply to other MFIs to meet their requirements. Some form of training should also be provided to help clients distinguish between business and family matters