An Analysis on The Impact of Default Risk on Microfinance Institution's Perfomance .A Case of JHM PrivateLimited · Electronic Theses and Dissertations

Author: Mudzudzu, Bridy
Title: An Analysis on The Impact of Default Risk on Microfinance Institution's Perfomance .A Case of JHM PrivateLimited
Abstract: The study focused on the analysis on the analysis of default risk and its impact on the performance of MFI’s. JHM was used as the case of study. The main objective of the study was to identify the main causes of default risk and to assess its impact on the performance of MFIs. Descriptive research was used for the study since there was a case of JHM Bindura to enhance the study. The population of the study was 88 as the target population. Random sampling method was used. The study applied the combined approach which takes into account and quantitative information. Primary data was collected through the use of questionnaires which were given to JHM Bindura employees and clients to fill. Data was presented through the use of tables, graphs, and pie charts and was analysed using Statistical Practices for Social Science (SPSS). The study then concluded that there was much to be done to reduce the levels of default risk in order to reduce losses, and it recommended that there should be high frequent repayment periods, a sharpened assessment process before issuing of loans and a critical credit analysis of clients before disbursement to reduce default risk.
Date: June 2023
Publisher: BUSE
Keywords: Financial performance; Loan; Microfinance
Supervisor: N/A