The Influence of Credit Terms on Loan Performance of Commercial Banks.
| dc.contributor.author | Gladys Joyce Mulungi | |
| dc.date.accessioned | 2023-09-15T10:21:43Z | |
| dc.date.available | 2023-09-15T10:21:43Z | |
| dc.date.issued | 2023-09-07 | |
| dc.description | This is a dissertation. | |
| dc.description.abstract | The study investigated the influence of credit terms on loan performance of commercial banks; particularly studying two loan types in Opportunity Bank. The study was guided by the following objectives: to evaluate the effect of credit risk control measures adopted by commercial banks on their loan performance, to evaluate the effect of credit collection policies on loan performance, and to determine the relationship between credit terms and loan performance. The study adopted a descriptive research design to obtain information. It focused on a target population of 15 employees and a sample size of 14 respondents was selected. The researcher collected both primary and secondary data collection sources and this was done using questionnaires and interviews as data collection instruments. The findings concluded that there is a strong relationship between credit risk control and loan performance which implied that an increase in credit risk control increased the loan performance of commercial banks and the reverse is true. It was also noticed that the type of policy adopted had a significant influence on the loan performance with a stringent policy being better than a libel one. There was also a strong positive relationship between credit terms and loan performance with a correlation coefficient, of r = 0.762 which implied that if credit terms increased, loan performance would also increase due to the significance of their relationship It was recommended that commercial banks should consider the interest rates that they charge on loans since they have an effect on loan repayment. Commercial banks should also consider the appraisal process in order to stem out the intolerable credit risks. The commercial banks should adopt a stringent credit policy of granting and collecting loans instead of a lenient policy since the former has more significant influence on loan performance. | |
| dc.identifier.uri | https://hdl.handle.net/20.500.12311/1031 | |
| dc.language.iso | en | |
| dc.title | The Influence of Credit Terms on Loan Performance of Commercial Banks. | |
| dc.type | Dissertation |