Analysis Of Credit Granting Procedures In Microfinance Institutions

The aim of this research was to establish the existence of credit granting in CMS, to examine how member are getting loans in Credit Mutuel du Senegal and to establish the relationship between credit granting procedure and the credit standard in CMS.The research methodology adopted both descriptive and analytical research focused on structured questionnaires to gain an in-depth understanding of credit granting procedures CMS. A sample size of 100 respondents was used in this study. Data was gathering from both primaries with the help of questionnaires, interview and secondary data got from internet, journals, textbooks articles and the archives found in CMS.This research revealed that credit granting procedure exist in CMS but there was management laxity to effectively put in practice them and this most of the time negatively impacted on CMS microfinance and on the credit performances.Besides this, there is a strong positive relationship between credit granting procedure in CMS and the different credit standard application. This implies that the effectiveness of credit granting procedures leads to higher loan performance level.The researcher recommends that the different part of the credit management to review the implementation of credit procedure according the credit standards application on the target population, the interest rate have to be reduce and adapted to the standard living of this people for a better credit access for member. But guarantees also should be clearly define and improve according each kind of creditCMS should train its clients on how to beneficially use the borrowed amount of money. In addition to this, the CMS should also listen to member’s requirementfor to efficiently serve their interests and so achieve its target goals but also achieve the microfinance general’s goals. The application of the above measures will strengthen the effectiveness of credit granting towards achieving the set objectives.