2026-09-22T16:05:33Zhttps://repository.unam.edu.na/server/oai/request

oai:repository.unam.edu.na:11070/40182025-06-28T22:01:14Zcom_11070_3315com_11070_3305col_11070_2806

Chirimbana, Moses Namupala, Victoria N. 2025-06-25T08:27:26Z 2025-06-25T08:27:26Z 2021 http://hdl.handle.net/11070/4018 A thesis submitted in partial fulfilment of the requirements for the degree of Master of Business Administration (Management Strategy) Agribank 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 en University of Namibia University of Namibia Namibia Agricultural Bank of Namibia Oshakati Customer loan default Agribank Loan Defaults Borrowers Customers Factors Cause Repayment An investigation into the causes of customer loan default at the Agricultural Bank of Namibia, Oshakati branch Thesisopen.access