The Impact of Credit Policy on Loan Uptake Levels in Financial Institutions: A Case of Centenary Bank, Mukono Branch
| dc.contributor.author | Derick Atwine | |
| dc.date.accessioned | 2024-07-09T13:35:45Z | |
| dc.date.available | 2024-07-09T13:35:45Z | |
| dc.date.issued | 2024-07-08 | |
| dc.description.abstract | The study investigated the impact of credit policy on loan uptake levels in financial institutions: a case of Centenary Bank, Mukono Branch. It specifically focused on; establishing the influence of credit terms on loan uptake levels, determining the influence of credit appraisal process on loan uptake levels and evaluating the influence of credit risk control on loan uptake levels in Centenary Bank, Mukono. The study was carried out using a cross sectional survey research design where both quantitative and qualitative research approaches were also used. The data was collected using questionnaires and interviews during the data collection, both purposive and simple random sampling methods were used. A sample size of 48 respondents who are management and employees from Centenary Bank, Mukono branch was also used in the study although 44 responded to the study. From the findings, it was revealed that favorable credit terms, effective credit appraisal procedures, and robust credit risk management practices positively influence customers' borrowing behavior and contribute to increased loan uptake levels. Clear communication, standardized procedures, and continuous improvement mechanisms emerged as key factors in enhancing the effectiveness of credit policies. These findings highlight the importance of adopting comprehensive credit policies tailored to customer needs and risk management strategies to facilitate lending activities and promote financial inclusion in Centenary Bank, Mukono. Lastly, the study recommended several key actions to enhance loan uptake levels at Centenary Bank, Mukono Branch. These included implementing more flexible loan repayment terms and competitive interest rates, improving communication channels for clear loan term communication, streamlining the loan application process, investing in staff training for better credit appraisal, and implementing proactive measures for monitoring borrowers' financial status. These recommendations collectively aim to create a conducive environment for borrowers, improve operational efficiency, and mitigate risks, ultimately contributing to increased loan uptake levels and financial sustainability for the bank. | |
| dc.identifier.uri | https://hdl.handle.net/20.500.12311/1603 | |
| dc.language.iso | en | |
| dc.publisher | Uganda Christian University | |
| dc.title | The Impact of Credit Policy on Loan Uptake Levels in Financial Institutions: A Case of Centenary Bank, Mukono Branch | |
| dc.type | Dissertation |