4.2.6: ProblemsCOPEDU Ltd
encounters in running its business
· Lack of experienced and qualified manpower
· Loan recovery and delay for repayment is a problem
· Lack of experience in managing individual loans
· Poor information system
· Insufficiency funds to meet clients demands or needs
and lack of enough resources
4.2.7: How to overcome these
problems
· Staff capacity building and proper management of
resources
· Intensive follow-up ofCOPEDU Ltd activities for
recovery
· Seeking advice from policy makers especially local
authorities,BNR, all on individual loan usage
· Training programs in favor of staff and clients
· Borrowing funds from commercial bodies
· Developing business plans strategically and
systematically to evaluate and monitor operations.
4.3:PART III:RESPONSES FROM COPEDU
LtdBENEFICIARIES
Table 14:Response on how customers come to know the
existence of COPEDU Ltd
|
Responses
|
Number of respondents
|
Percentage
|
|
Relative
|
7
|
35
|
|
A friend
|
10
|
50
|
|
Advert
|
3
|
15
|
|
Total
|
20
|
100
|
Source: Primary data, 2015
The table 14 shows that the majority, 50% ofCOPEDU Ltd
beneficiaries answered that they come to know the existence ofCOPEDU Ltdfrom
friends, because of a good business environment and negotiable simple loans.
And 35 of respondents said that they come to know its existence from relatives
while 15% of respondents said that they come to know the existence COPEDU
Ltdfrom advert.
COPEDU Ltdis one of MFIs working with the productive poor,
which calls for more clients for credits in groups for business. A person is a
guarantee of another, which attracted more customers to joinCOPEDU Ltd.
Table 15: Response on how long it took beneficiaries
to get a credit.
|
Responses
|
Number of respondents
|
Percentage
|
|
1 week
|
-
|
-
|
|
2 weeks
|
14
|
70
|
|
1 month
|
4
|
20
|
|
2 month
|
2
|
10
|
|
Total
|
20
|
100
|
Source:Primary data, 2015
The result presented in table 15 show that the majority of
respondents with 70% answered that it took them two weeks to get a credit
fromCOPEDU Ltd, reason being a good service delivery where credits are given at
subsidized interest, a person is a guarantee of another hence quick services,
while 20% of respondents said that it took one month to get a credit.
Generally the credit was usefully in the following ways: it
generated customers' income widened their commercial business.
Table 16:Response whether the credit was difficult to
repay.
|
Responses
|
Number of respondents
|
Percentage (%)
|
|
Yes
|
5
|
25
|
|
No
|
15
|
75
|
|
Total
|
20
|
100
|
Source: Primary data, 2015
Table 16 shows that 75% of respondents answered that the
credit was not difficult to repay since inCOPEDU Ltd repayment is not
punishable and immediate. It is negotiable. No difficulties in repayment, One
month repayment is good to clients. Yet in some institutions credit is repaid
after one week. The revenue realized helps them to repay. 25% of respondents
said that it was difficult to repay the credit because it was hard to attain
ready revenue.
Table 17:Responses on which security clients offer to
get the loans.
|
Responses
|
Number of respondents
|
Percentage (%)
|
|
Building
|
1
|
5
|
|
Land
|
2
|
10
|
|
Garden
|
-
|
-
|
|
Any other
|
17
|
85
|
|
Total
|
20
|
100
|
Source: Primary data, 2015
Table 17 shows that the majority of respondents with 85%
answered that no collateral is offered as Land, Building or garden, this is a
case for individual loans. In solidarity groups, they do not give security, it
is a mutual guarantee. A personal is a guarantee for another; all members
inCOPEDU Ltd guarantee each other and bear the responsibility of timely loan
repayment. In this case security is the group, but security clients give is TVs
materials, sitting rooms and many others.
Table 18: Response on whether clients receive funds at
subsidized interest rates
|
Responses
|
Number of respondents
|
Percentage (%)
|
|
Yes
|
16
|
80
|
|
No
|
4
|
20
|
|
Total
|
20
|
100
|
Source: Primary data, 2015
From the above table shows that the majority of respondents
80% ofCOPEDU Ltdbeneficiaries said that they get credit at subsidized interest
rates, probably this helps to increase their business while 20% of respondents
are not contented with interest charged on disbursed credit. In general the
debit interest rate for most of MFIs is 1.5% per month which is relatively
low.
| 
