An Analysis of credit management and loan performance: a case study of Microhub financial services
- Author
- Mavhurah, Loreta F.
- Title
- An Analysis of credit management and loan performance: a case study of Microhub financial services
- Abstract
- Regardless of the type of the business, credit management is one of the most crucial tasks that must be completed by any organization that uses credit. A financial institution's stability and ongoing profitability depend on good credit management, and bad financial performance and condition are typically caused by declining credit quality. The largest danger in microfinance, as with every financial organization, is lending money and not getting it back. The goal of the study was to ascertain how credit management affected Microhub Financial Services (Pvt) Ltd.'s loan performance. The research used a descriptive survey methodology. 50 respondents who are employees of the company made up the study's sample. . The investigation was conducted using data from a census. Using questionnaires that answered every question on the list, primary data were gathered. To analyze the data, descriptive statistics were employed. Additionally, descriptions were created using the data from the tables. The study discovered that the loan performance of Microhub Financial Services (Pvt) Ltd. was impacted by client evaluation, credit risk control, and collection policy. The study found a significant correlation between client evaluation, credit risk management, and collection policy and loan performance. The study found that the company's loan performance is highly influenced by client evaluation, credit risk management, and collection policy. Delinquency management was shown to be a useful instrument in managing credit risk and credit controls were found to have a greater impact on loan performance. The report suggests that Microhub Financial Services (Pvt) Ltd can prosper by adopting and implementing credit management methods and good loan management.
- Date
- June 2023
- Publisher
- BUSE
- Keywords
- Credit management,
- Financial performance,
- Supervisor
- N/A
- Item sets
- Department of Accountancy
Part of An Analysis of credit management and loan performance: a case study of Microhub financial services