THE IMPACT OF EFFECTIVE LOAN MANAGEMENT ON THE FINANCIAL PERFORMANCE OF MICRO FINANCE INSTITUATIONS

ABSTRACT

This report focuses on THE IMPACT OF EFFECTIVE LOAN MANAGEMENT ON THE FINANCIAL PERFORMANCE OF MICRO FINANCE INSTITUATION the internship was carried out in CECIL at DAKAR. The main objective of this study was to evaluate the  problems  associated to loan management and it’s financial performance on micro finance instituations some of the problems included loan defaults loan delinquency availability of unmarketable securities and the existence of bad loans.during our internship we worked in the various deparment such as the customer service where we helped customers filled passbooks, gave directions and welcomed customers passbooks, upon arrival, we worked in the commercial department where we made daily collections and visited sites of borrows. Though out out stay in CECIL we faced some problems which included loan default, loan delinquency existence of bad loans and the presence of unmarketable securities. We provided some recommendations to the pending problems which included the use of modern credit analysis such as credit rating and scoring reduction of interest rate, properly following the principles and canons of lending ang lastly solving the information asymmetry problem.