The Integrity Factors Affecting Loan Repayment Performance of Savings and Credits Cooperative Societies (SACCOS) in Mbeya City.

SACCOS are very important in Tanzania for delivering various services to large number of people who cannot afford to obtain credit services from formal financial institutions such as commercial banks due stringent rules and regulations of formal Financial Institutions. The critical problem which is facing most of SACCOS in Tanzania is loans default. Therefore, this study sought to assess the integrity factors affecting loans repayment performance among SACCOS’ borrowers in Mbeya City Council, Tanzania. The study used descriptive research design and a sample size of 178borrowers who were selected using the systematic sampling. The study used the survey strategy where questionnaires were used to collect data. The collected data was coded, summarized and verified using the SPSS computer software program. The study used a descriptive method to assess the factors that affecting loan repayment for SACCO’s borrowers in Mbeya City Council. The findings established that integrity, loan appraisal and value of collateral were the major factors that influence loan default. The study recommends that SACCOS should revise the lending procedures, rules and regulations which act as a loophole for disbursing loans to borrowers who are not qualified. Also, the study recommends that SACCOS should employ qualified credit officers who will be able to assess the qualifications of loans applicants and pay them the reasonable salaries and other incentives to credit officers so as to overcome the corruption from SACCO’s officers. Training to credit officers and credit committee is also highly emphasized