INFLUENCE OF CREDIT RISK MANAGEMENT PRACTICES ON LOAN DELINQUENCY IN SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN MERU COUNTY, KENYA

Abstract

The study aimed at assessing the influence of credit risk management practices on loan delinquency in SACCOS in Meru County, Kenya. The study was guided by the research objectives which were to determine the influence of credit risk control and collection policy on loan delinquency. The study adopted a descriptive research design and the population consisted of all the44 credit officers of SACCOs in Meru County. Questionnaire was used to collect data. Multiple linear regressions were used in data analysis. Analyzed data was presented in percentages and frequency tables. The study revealed that there exist a strong relationship between credit risk controls, collection policy and loan delinquency in SACCOs. Thus the study concludes that credit risk management practices significantly influenced loan delinquency in SACCOs in Meru County. The study recommends adoption of a more stringent policy on credit risk management practices in SACCOs for effective debt recovery.