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Savings and Loans Institutions in Ghana have suffered significant loan repayment default resulting into subsequently decreased employment levels and cash flow problems in Savings and Loans Institutions. This study was carried out in order to establish the factors influencing loan repayment default among savings and loans companies in Kumasi metropolitan assembly. Using a descriptive survey design individual savings and loans beneficiaries and Savings and Loans Institution officials were studied. A representative random sample of 95 respondents was selected from the study population using random sampling procedures for Savings and Loans Institutions officers and loan beneficiaries respectively. Data collected using both structured and unstructured questionnaires were analyzed using descriptive and inferential statistics. The findings of the study revealed that there was significant relationship between non-supervision of borrowers (p=0.000<0.05), credit policies (p=0.000<0.05), initial loan appraisal process (p=0.011<0.05), loan recovery procedures (p=0.000<0.05) and loan repayment default. The study further indicates a strong link between group loan for beneficiaries and loan repayment default. The study therefore recommends that Savings and Loans Institutions should embark on educational campaign to educate its customers on the importance of taking group loans especially among traders in common commodities or activities.
About the author
Dr. Kwasi Kwateng hat einen Bachelor-Abschluss in Bankwesen und Finanzen von der Ghana Baptist University und einen Master-Abschluss in Betriebswirtschaft und Finanzen von der University of Education Winneba sowie einen Master of Arts in Theologie von der Pentecost University. Außerdem hat er an der Grace International University in den USA in Theologie promoviert.
