Assesment of loan collection and disbursement management practice (case study wegagen bank bole branch)

Abstract

The study conducted on assessment of loan collection and disbursement management practice of wegegen bank Bole branch. Therefore, the purpose of undertaking this study was to assess the loan management practice of the company and to recommend possible solutions. The study will significant to the management to evaluate the performance of loan collection at the bank and take necessary measures to correct weaknesses and keep up strength. In data collection the researcher used both primary and secondary sources. The primary data were collected through unstructured interview and questionnaires. The secondary data to be collected from published material and manuals which are available in the bank. Regarding the sample techniques, judgmental sampling of non probability was used and the data was processed and explained by descriptive method of data analysis. according to major finding the bank has loan evaluation method, through evaluating source of income, renewed trade license for the current fiscal year, commercial registration certificate, investment license, collateral they borrower have and kind of business borrower doing. Finally the researcher recommends that for the bank it is better to apply modern methods of valuation collateral asset and hires a competent independent and well qualified personnel.