THE EFFECT OF LOANS DEUNQUENCY ON THE ON THE GROWTH OF MICROFINANCE INSTITUTION IN CAMEROUN. CASE STUDY: MUTENGUENE SAVINGS AND LOANS COOPERATIVE SOCIETY (CREDIT UNOIN)

Abstract

MSLCS is a microfinance institution which provides financial activities to its members like granting loans and safeguard member’s money which they receive in the form of deposits and their main objectives is to satisfy members and also maximize proft.For MSLCS to be sucessful,it must caredully study its record, strategies and then choose the best techniques to operate.Going through the income statement of MSLCS it can be noticed that loan granting is their mosr profiatble activity as it genrates profit through the interest paid back on loans by borrowers.However,during my internship in MSLCS we noticed that many members took loans and don’t paid back at time.This made me to question myself on what is the impact of delinquent member on the union .This study is heared toward investigating on THE EFFECTS OF LOAN DELINQUENCY ON THE GROWTH OF MICROFINANCE INSTITUTIONS IN CAMEROON where MUTENGENE SAVINGS AND LOANS COOPERATIVE SOCIETY (MSLCS) is the

case study.The aim objective here is to examine loans from the moment there are granted till when they become delinquent and also different solutions to overcome and limit loan delinquency in MSLCS.For the methodology of obtained from interviews and observations during the internship,information from my supervisors and verbal questioning while the secondary data was obatained from research on internet , reading of past reports and textbooks.We recommend the loan officer to take time to appraise loans before granting them and make sure all they apply the recovery process to all the members.