Abstract:
This study examined the causes of Loan delinquency in Savings and Credit Cooperatives in
Lushoto District, taking Kumekucha Mwamko SACCOs and Lushoto Teachers' SACCOs as case
studies. It was guided by three specific objectives which were: to identify types of loans accessed
by SACCOs to examine the influence of members' personal profiles on loan repayment and to
examine strategies adopted by SACCOs to minimize loan delinquency. The study used a case study
research design. Purposive and stratified sampling procedures were adopted in selecting
respondents and data were collected through closed and open-ended questionnaires, interview and
documentary review. Quantitative and qualitative data were analyzed and tabulated by the use of
tables and bar graphs. The study found out that members' profile had an influence on loan
repayment. Also, loan delinquency was mainly caused by depressed business, unfavourable
climatic condition and misallocation of loans. Based on the research findings, the study
recommends members' training improper loan utilization and strong supervision on loans. The
government also should provide sufficient, financial and human resources to the Co-operative
Development Department so that it can extend its supportive roles to the SACCOs to improve its
service delivery to members.
