Assessing the performance of youth development fund in Tanzania in terms of loan repayment

The aim of this dissertation was to give an assessment of the performance of youth development fund in Tanzania in terms of loan repayment. Through a random sampling technique Ndugumbi ward was selected out of 28 wards in Kinondoni. The sample size of the study was 168 YDF loan beneficiaries out of 301 total loan beneficiaries in Ndugumbi ward. The specific objectives were to examine the effect of youth education, skills, grace period and loan size to beneficiaries’ loan repayment tendencies. In this study the collected data were analyzed and four dimensions were selected to be tested in order to explore their relationship with beneficiaries’ loan repayment behaviors. A quantitative and qualitative research approach was used to get a better understanding of YDF performance in terms of loan repayment. The data obtained from the survey confirmed that education level is negatively related to loan repayment performance implying that a person with a secondary education level and above does not necessarily show good repayment history, but the most important is the education type of that person. Education type which shows a person has obtained certain skills in business. Due to results obtained from education level, it was necessary to further test beneficiaries’ education type which had a positive relationship with loan repayment. Grace period had a positive relationship with loan repayment as those who were granted with grace period had shown good repayment history and therefore good loan repayment, but loan size had a negative relationship as those who took large loans seem to experience high default rates. It is therefore better to have better plans on how one is to service the loan amount and ensuring profit by well informed through obtaining the required skills in business