Loan assessment and financial performance of SACCOs

Abstract

The study kicked off to examine whether a relationship appears mid loan assessment and financial performance of SACCOs in Mbarara City. This undertaking espoused a non-experimental cross-sectional research design with both descriptive and analytical styles where a quantitative approach to data collection and analysis was considered. The study gathered quantitative data from 109 participants using questionnaires. Questionnaires were used to gather quantitative data which was then put into a data management tool, statistical package for social scientists version 20 for further description and inferences. The tool was then used to output a descriptive presentation and Pearson correlation coefficient stood employed to ascertain statistical significance between the loan assessment and financial performance. Findings from the undertaking exposed a solid positive affiliation amid loan assessment besides financial performance of SACCOs (r=0.870**, p<0.000). This undertaking resolved that loan assessment influences financial performance of SACCOs positively. The study commends SACCOs to adopt well thought and efficient loan assessment strategies as means to improve their financial performance