TABLE OF CONTENT DECLARATION ............................................................................................................................. i APPROVAL ................................................................................................................................... ii DEDICATION .............................................................................................................................. iii ACKNOWLEDGMENT ............................................................................................................... iv TABLE OF CONTENT .................................................................................................................. v LIST OF TABLES ...................................................................................................................... viii LIST OF ACRONYMS ................................................................................................................. ix ABSTRACT .................................................................................................................................... x CHAPTER ONE .............................................................................................................................. l INTRODUCTION ........................................................................................................................... 1 1.1 Background to the Study ........................................................................................................... 1 1.2 Statement of the Problem .......................................................................................................... 2 1.3 Purpose of the study ................................................................................................................. .3 1.4 Objectives of the study .............................................................................................................. 3 1.5 Research Questions .................................................................................................................. .3 1.6 Scope of the Study ..................................................................................................................... 3 1.8 Conceptual Framework ............................................................................................................. 5 CHAPTER TWO ............................................................................................................................. 6 LITERATURE REVIEW ................................................................................................................ 6 2.0 Introduction ............................................................................................................................... 6 2.1. The Credit and Saving Cooperative as a system for financing ................................................ 6 2.2. Major Risks to Credit and Saving Union ................................................................................. 6 2.3. Credit Methodology ................................................................................................................ 10 CHAPTER THREE ....................................................................................................................... 15 RESEARCH METHODOLOGY .................................................................................................. 15 3.0. Introduction ............................................................................................................................ 15 3 .1 Research Design ...................................................................................................................... 15 3 .2 Population of the Study ........................................................................................................... 15 3 .3 Sample Size ............................................................................................................................. 15 3 .3. Sampling Procedure ............................................................................................................... 15 V 3 .2 Methods of Data Collection .................................................................................................... 16 3.3 Data Analysis .......................................................................................................................... 16 3 .4 Ethical consideration ............................................................................................................... 16 3.8 Validity and reliability ............................................................................................................. 17 3.8.1 Validity ................................................................................................................................. 17 3.8.2 Reliability ............................................................................................................................. 17 CHAPTERFOUR ......................................................................................................................... 19 PRESENTATION, INTERPRETATION AND DISCUSSION OF THE FINDINGS ................ 19 4.0 Introduction ............................................................................................................................. 19 Table 4. 1 Response Rate .............................................................................................................. 20 4.1. Demographic Characteristics of client respondents ............................................................... 20 4.l.2Gender and Matital Status of Respondents .......................................................................... 21 4.1.4 Educational Status of Respondents ....................................................................................... 23 4.2. Loan Provision Practice of WISE Saving and Credit Cooperatives ....................................... 24 4.2.1. Number of members and major requirements to be a member ........................................... 24 4.2.2 Sources of the Cooperative Capital ...................................................................................... 26 4.2.4Assessment of Variables of borrowers to provide loan ........................................................ 27 4.2.4 Loan Size and Credit Period ................................................................................................. 28 4.2.4.1 Loan size ............................................................................................................................ 28 4.2.4.2 Credit Period ...................................................................................................................... 31 4.2.5 Lending Interest Rate ............................................................................................................ 31 4.2.6 Collection Procedures .......................................................................................................... .32 4.4. Degree of Collectiblity ........................................................................................................... 34 4.4.1 Factors Leading to Late Payment ........................................................................................ .35 4.4.2 Collection procedures for default loan amount .................................................................... 36 4.4.4 Savings .................................................................................................................................. 37 4.4. Benefits and Challenges of the cooperative's service ............................................................ 38 4.4.1. Benefits of the cooperative's service to its clients .............................................................. 38 4.4.2 Major Weakness and Challenges of the Organization .......................................................... 39 4.5 Limitations of the Study ......................................................................................................... .40 CHAPTER FIVE ........................................................................................................................... 41 VI SUMMARY OF THE MAJOR FINDINGS, CONCLUSIONS AND RECOMMENDATIONS41 5.0 Introduction ............................................................................................................................. 41 5.1. Summary and Discussions and conclusion ........................................................................... .41 5.2. Recommendations ................................................................................................................. .42 5.3. Suggestions for Further Research .......................................................................................... .43 REFERENCES .............................................................................................................................. 44 APPEDIX I: INSTRUMENTS ..................................................................................................... .46 Appendix (a) Questionnaire for Members .................................................................................... 46 Appendix (b ): Interview guide for management ........................................................................... 51 Appendix II: Time Frame .............................................................................................................. 52 Appendix III: Proposed Budget ..................................................................................................... 53 vii LIST OF TABLES Table 4. I Response Rate .............................................................................................................. 20 Table 4. 2 Age Description ............................................................................................................ 21 Table 4. 4. Marital Status and No. ofDependents ......................................................................... 22 Table 4. 5 Number of Members .................................................................................................... 25 Table 4. 6 Loan Size ....................................................................................................................... 29 Table 4. 7 Loan Range ................................................................................................................. .30 Table 4. 8 Number of Members in-group fo1mation .................................................................... .33 Table 4. 9. Sources of Loan Payment ............................................................................................ 35 Table 4. 10. Factors that lead to late payment .............................................................................. .36 Table 4. 11 Savings ....................................................................................................................... 38 viii

WISE SACs SAC MFis SME NBT NGOs LIST OF ACRONYMS Women in Self Employment Saving and Credit Cooperatives Saving and Credit Cooperative Microfinance Institutions Small and Medium Business Enterp1ises National Bank of Tanzania Non-Government Organizations IX ABSTRACT This research entitled "the credit provision and collection criteria in WISE savings and credit cooperatives Union for Women in Tanzania" examined the loan provision, collection procedures as well as the default rate of this SAC. Today a number of Saving and Credit Cooperatives(SACs) are established to give a saving and loan service to clients and much emphasis is given for those women who wants to run SME. WISE's major clients are women who would have an impact on changing their own life as well as their families. The study attempted to identify and assess the loan provision criteria 's, collection procedures, the reason for default, the impact of interest on the cooperatives and clients, and last but not the least the benefits and challenges of the SAC under WISE. Data for the study was collected through questionnaire, interview and discussions with four cooperatives members and credit officers who are situated in the sub-city of Dar e s Salaam. Results of the study indicate that in order to give loan to a woman WISE have set criteria 's so as to decrease the default rate. A woman has to save money and has to provide a business plan in order to be given the requested loan, after being a member of the SA Cs. The study revealed that the level of education of the borrowers reduces the default rate in turn facilities heavily the collection procedures. The study also indicates that the interest charged has a great impact on clients which makes them to reduce the amount of loan they want to take.the study recommends that that to provide a specific amount of loan for those groups of borrowers who have less educational background. A policy should be developed and designed to this group of lenders, since majority of the informal sector does not have any or little access to the formal education