The Role Of Group Guarantee In Enforcing Loan Recovery In Microfinances: A Case Study Of Milango Financial Services Limited

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dc.contributor.authorGitau, Leah
dc.date.accessioned2020-10-21T09:21:24Z
dc.date.available2020-10-21T09:21:24Z
dc.date.issued2014-03
dc.descriptionMaster of Business Administration in Strategic Managementen_US
dc.description.abstractThe importance of an effective guarantee system cannot be understated. Ideally, with group guarantee, the group takes full responsibility of all loans advanced to the members. This joint liability should result in full recovery of such loans. However, cases of delinquency and default that spin out of control are at times observed. Such cases lead to liquidity problems in the microfinance institution and could eventually lead to failure of the enterprise. This research used a descriptive study which sought to find out how group guarantee had been applied in loan recovery in the selected microfinance institution. The study attempted to pool knowledge about the application of group liability, whether the clients were fully aware of its implications by the time loans are advanced to them and how group liability was enforced in loan recovery. Thirteen staff members and 137 clients participated in the study through responding to questionnaires. The study found that the group was weak and that only about two-thirds of the clients were trained before taking their first loans. As a result, clients were not well informed on what was expected of them when they borrowed loans from the institution. The study recommends that the groups be built up by proper training on group dynamics, group liability and its implications and on having a constitution that is followed by the group members.en_US
dc.description.sponsorshipDaystar University, School of Business and Economicsen_US
dc.identifier.citationGitau, L., (2014). The Role of Group Guarantee in Enforcing Loan Recovery in Microfinances: A Case Study of Milango Financial Services Limited. Daystar University, School of Communication, Nairobi.en_US
dc.identifier.urihttps://repository.daystar.ac.ke/handle/123456789/3319
dc.language.isoenen_US
dc.publisherDaystar University, School of Communicationen_US
dc.subjectGroup Guaranteeen_US
dc.subjectLoan Recoveryen_US
dc.subjectMicrofinancesen_US
dc.subjectMilango Financial Services Limiteden_US
dc.titleThe Role Of Group Guarantee In Enforcing Loan Recovery In Microfinances: A Case Study Of Milango Financial Services Limiteden_US
dc.typeThesisen_US

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