In most cases many SACCOs in Tanzania, regardless of the good objective they have, they fail to deliver adequate socio-economic benefits to members as a result that members expected when established the SACCOs are not achieved. This is caused by various internal and external factors affecting the area of microfinance operations or performances. As time goes these factors/challenges may cause many SACCOs to become dormant or may even collapse totally and for some other may keep on operations but fail to deliver services effectively to its members and the community at large. They cause SACCOs to provide service to its members and lead to poor member’s participation as far as commitment is concerned, loss of members’ funds, failure to overcome competition, endless of internal conflicts and even the loss of SACCOS autonomy and independence just a few to mention. These problems in precise are;
Delinquent is a situation where a borrower is late or overdue on a payment, such as income taxes, a loan,a mortgage, an automobile loan, or a credit card account.
There have been traditional thinking of what could be the causes of loan delinquency, on this traditional way of thinking, people think loan delinquencies are caused by external factors. Some of the factors that they consider are illness or death in the family, calamities, weather conditions, poor economic conditions, price fluctuation and poor business practice of the client.
For the institution that has this way of thinking, they believe they can’t do anything about it since they are out of their control. And for them, loan delinquency becomes the big challenge in the business and to some lead to business failure.
Any business in any context is usually determined to grow and bring out positive results to its own operations, stakeholders, and clients, beneficiary as well nation at large. It is always a dream of every businessman to make sure that his business grows and his brands expands to reaching many people across the field of his business operations even further.
It is even more aware these results take time to become reality especially when the business is new, time is an important aspect that with it the business grow and endure the success that it was expected to earn.
However, it is not only time that determines the growth of a business from the scratch to the paramount level but there are some other leading factors that needs to be handled with care to enhance the growth of the business.
In the Microfinance field, so as in any field there are governing laws that monitor and regulate the operation of its entities and agencies. These laws establish bodies, promote conducts, prohibit misconducts, so as encourage and grant relies or remedy in its various operations of its entities and agencies herein known as the Microfinance service providers. These entities and agencies are what run the day to day operation of the microfinance business. The Laws solely focus on making sure that the setup procedures are adhered to and followed in accordance to the requirements of the Laws so as to avoid the contradiction amongst the entities and agencies or between the service provides/clients and the regulatory bodies.