An investigation into the causes of customer loan default at the Agricultural Bank of Namibia, Oshakati branch

dc.contributor.advisorChirimbana, Moses
dc.contributor.authorNamupala, Victoria N.
dc.date.accessioned2025-06-25T08:27:26Z
dc.date.available2025-06-25T08:27:26Z
dc.date.issued2021
dc.descriptionA thesis submitted in partial fulfilment of the requirements for the degree of Master of Business Administration (Management Strategy)
dc.description.abstractAgribank has faced credit risk of borrowers not repaying loans on time as per the loan contract. This has resulted in financial losses to the ban . The Bank is concerned with the low rate of loan recovery on its scheduled loan instalments. This concem is due to clients defaulting, resulting in a persistent growth in the arrear loan book. Though the bank has adequate security in place for its loan portfolio, the impact of a low rate of debt collection on its liquidity remains a cause for concern. This study sought to investigate factors that cause customers to default on loan repayments on loans financed by Agribank. Due to strict privacy of the Bank, information was only assessable to the authorised persons. The mixed method approach was adopted for the study. The study used a semi-structured questionnaire for customers and a semi structured interview guide for staff members. The sample size was 187 participants that comprising of 37% female and 63% male, with the biggest age group of 41-50 years contributing 44.9%. The loan accounts represented in the study were livestock, h01iiculture, tractor, and poultry. The study identified that poor loan-monitoring and follow-up, poor credit risk assessment, high interest rates, and grace period were the specific factors from the bank's side that affected the level of loan repayment. On the other hand, business experience, loan size and multiple loans, loan diversion and, other income were the reasons for defaulting from the customer's side. This study recommends that Agribank should enforce its loan monitoring officers to always follow up on the loans taken and to strengthen credit risk assessment. Training workshops were suggested for customers in areas that concern credit or loans, its sustainability, and activities that are considered to help the repayment of the loans or that lead to defaults thereof
dc.identifier.urihttp://hdl.handle.net/11070/4018
dc.language.isoen
dc.publisherUniversity of Namibia
dc.subjectUniversity of Namibia
dc.subjectNamibia
dc.subjectAgricultural Bank of Namibia
dc.subjectOshakati
dc.subjectCustomer loan default
dc.subjectAgribank
dc.subjectLoan
dc.subjectDefaults
dc.subjectBorrowers
dc.subjectCustomers
dc.subjectFactors
dc.subjectCause
dc.subjectRepayment
dc.titleAn investigation into the causes of customer loan default at the Agricultural Bank of Namibia, Oshakati branch
dc.typeThesis
Files
Original bundle
Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
Namupala_2021.pdf
Size:
29.11 MB
Format:
Adobe Portable Document Format
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.62 KB
Format:
Item-specific license agreed upon to submission
Description: