“An Assessment of Effectiveness of Loan Appraisal Procedures and to Identify the Levels of Loan Approvals and Repayment by The Commercial Banks on the Socio Economic Status of the Population in Tanzania: A case study of CRDB Bank at Ilala District
This study focuses on effectiveness of loan appraisal procedures and to identify the levels of loans approvals and repayment by the commercial Banks on the socio economic status of the population in Tanzania. The main objective was to assess effectiveness of loan appraisal procedures and to identify the levels of loans approvals and repayment by the commercial banks on the socio economic status of the population of Ilala District, Dar es salaam. The specific objective were to examine the banks loans issuance procedures with regard to their acceptance by the borrower in Ilala District, to examine the effects of bank loan on the reduction of unemployment status in Ilala District Dar es salaam and to establish the relationship between bank loans issuance and socio economic status of the borrowers in Ilala district. Finally to examine the socio economic benefit accrued by the borrowers of the loan from the bank. Case study design was used. In this study participatory observation, documentation, discussion and questionnaire were used in obtaining information about the effectiveness of loan appraisal procedures and identification the levels of loan approval and repayment. The findings showed that there were problem in procedure, criteria and condition in loan provision and loan officer not comply with the rule and not fair to customers. The study suggest that the banks needs to have better ways to eliminate those problems in order to perform well as well as to make the customer access loan easily without regard their level of income and also reduce unemployment in the society and improving the socio economic status of the population in Tanzania. It also recommended that the CRDB should emphasis on setting the criteria and condition that favor all classes in the society and also to establish way which will enable to know all employees who are not perform work regarding the code of practice. Finally, this research leave this work open to constructive criticisms and expects future scholars to delve into further research and improve on this work.
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