AN ANALYSIS OF MICRO FINANCE INSTITUTION (WITH RESPECT TO LOAN REPAYMENT)

This study is on the title of “an analysis of micro finance institution with respect to loan repayment” in Oromia Credit and Saving Share Company with primary objective of examine the repayment of loans granted to customers on micro level. In this study both primary and secondary source of data have been used and the researcher used open and close questionnaires and structured interview to collect data from the employee, customers and management body of the institutions. Study used convenience non probability technique to select customers and census technique to select target population among employee and management body of Oromia Credit and Saving Share Company. And also the researcher used descriptive method of data analyzing. The analysis of the data revealed that, there is problem in group borrowing methodology, the institution was not collecting its credit on specified period, rather they mostly after the due date and also the repayment period was not suitable. Therefore the institution advised to create awareness to the customer, about the time value of money and to improve the repayment period.