Research Journal of Economics & Business Studies - RJEBS - The ...

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esponded by (7.6%) of the members. This indicates members in Gohe cooperatives saving and credit union more value their saving security, secondly access to credit to get loan and thirdly return on their savings. Table 8, Reasons of Respondents on Having Saving Account in the union Reasons of Respondents on Having Saving Account in Gohe Frequency Percent Cooperatives Saving and Credit Union Security 70 53 Emergency Use 10 7.6 To Get Interest Income 19 14.4 Ease of Loan Access 33 25 Total 132 100 Source: Worked out from 2002 E. C. Members Survey Data The WOCCU saving mobilization strategy technical guide states 1 , which ‘Savers Most Value Safety’ Savers most frequently report that the key feature they seek is safety for their savings. They want to feel confident that their deposits will be available when they need them. 1.6.1.2 LOAN SERVICE STRATEGIES OF GOHE COOPERATIVES SAVING AND CREDIT UNION. On this section of the study the researcher assessed members attitude, opinion and knowledge results on the value of loan services effectiveness of the union on loan repayment capacity analysis, credit policy, interest rate charged on loan, weakness in the union, loan evaluation processes, quality of the unions’ loan services and the overall appropriateness of financial services of Gohe cooperatives saving and credit union; and discussed the outcomes of the study. WOCCU states 1 effective credit screening practices improve asset quality and protect client savings. Credit risk is measured most accurately when loans are approved and processed on the basis of the “five Cs”: character, capital, capacity, collateral, and conditions. Rural saving and credit cooperative unions have managed to mitigate loan repayment risks in their loan portfolios while engaging in rural micro-credit. Given the fluidity of funds between the household and the union, best practice in individual lending is for lenders to evaluate the risk not of a single activity listed by the borrower on the loan application but rather of all the diverse cash flows of all household members. To cope with the heterogeneity, seasonality, and the risk of agriculture, the best rural micro lenders tailor loans to the production cycles of each borrower and check that the household can repay with non-farm income even if crops fail or if livestock die. Through time and repeated contact, loan officers grow to know the character and cash flows of borrowers and so can judge their risk better. In the survey members of Gohe cooperatives saving and credit union asked on their knowledge that the Gohe cooperatives saving and credit union followed on loan evaluation to determine quality credit. The rural saving and credit cooperative unions’ main asset is the loan portfolio that occupies the largest proportion in total assets of saving and credit unions. The largest source of risk of any saving and credit cooperative union resides in its loan portfolio which largely depends on the quality of loan portfolio. The gravest danger to this asset is the delinquency. The higher delinquency ratio implies more severity in the financial condition and presence of higher risk to the member-client savings. To overcome the occurrence of this danger Gohe cooperative saving and credit union used the lending methodology that relies in part on the existing bonds of the farmer groups and follows stringent credit policy. The collateral for loan is savings, while additional guarantors are required to secure the remaining value of loans such as group guarantee. The collateralized savings cannot be withdrawn until the completion of loan repayment. This is likely to encourage low income members into a habit to save and of cash management, in addition to acting as a safety net. Loans are disbursed to needy members according to the given loan Criteria’s which are stated in the by-laws of the union. The union www.theinternationaljournal.org > RJEBS: Volume: 02, Number: 06, April-2013 Page 70
provides loans to their members mainly for purchase of agricultural inputs (seeds, fertilizer, tools, etc), animal fattening, animal rearing, and off-farm activities such as loan for marketing and warehousing activities; While practicing group lending the union taken into account the business plan, the audit report of the cooperatives, and the requirement of loan and articles of agreement on the loan requirement of primary cooperatives. In addition, Gohe cooperatives saving and credit union to maintain loan security and to avoid delinquency considered whether the loan requested goes in line with their plan, giving training on accounting, and the union check if the loan requested is for purchase of cereals the union first checks whether there is cereals or not in that area. Sometimes the loan utilization problem under primary cooperative levels they used the loan on cereals acquisition and when they are requested they couldn’t pay on time which creates difficulty of making regular financial audit report. The union maintained general reserve, work appreciation reserve and social reserve as per its by-law, though, it was not practicing Provisions for loan losses one of WOCCUs safety principles which is the first line of defense to protect savings against identified risk of losses to the saving and credit union. Due to the fact that Gohe cooperatives saving and credit union has regulatory standards followed a more stringent policy on loan loss provisioning. As per their service diversification and awareness creation Gohe cooperatives saving and credit union was providing loan for marketing and warehousing activities as diversified services though, the union unable perform as expected on awareness creation due to the existence of budget limitation. The loan services of Gohe cooperatives saving and credit union faces many challenges in Bure woreda, however, it strives to provide financial intermediation by resisting these problems. Low population density of the rural members creates high transactions costs; limited technological advancement; poor infrastructure; difficulties in assessing the creditworthiness of a member and the limited possibility to ask for collateral add to the high transaction costs. Though the union able to avoid loan delinquency and the problem of getting collateral from the rural poor members the union overcome these problems by using group guarantee and granting loan based on their demand deposits they have in the union. The Loan demand is very high and incompatible compared with the availability of loan able funds that is the union couldn’t met the primary cooperatives needs which constrained the loan out reach of the union. Loan able funds are in short supply for the following main reasons: small size of saving accounts of RUSACCOs members of the union due to the incidence of high rural poverty; poor saving habits of members; small membership size of RUSACCOs; lack of vertical and horizontal linkages among cooperatives and funding other institutions the union was not even in a position to mobilize surplus funds; Poor linkages with banking and other financial Institutions like Insurance; negligible external revolving fund to the union; rural and agricultural credit (food security revolving fund) are directed and managed by multi-purpose cooperatives; Low net surplus generated and retained within the union due to small-scale operations. Similarly, Lack of entrepreneurial skills or know how to utilize the available fund even. Hence, the loan types are limited and similar in usage; they lack diversity and peculiarity in character the interviewee integrated this problem with the Zonal level professionals they stated the professionals have no the required skills in financial management and even they couldn’t render technical assistance on financial management semi-annually which mean that looseness of the zonal promotion Bureau on assigning qualified technical assistance for the sustainable financial intermediation of the union in the area. 1.7 CONCLUSIONS Ethiopia’s Agriculture Development led industrialization strategy has the basic objective of reducing rural poverty, increasing agricultural production and productivity in rural Ethiopia. To meet these objectives, rural financial service has its own tremendous role these services are rendered by the rural saving and credit cooperatives. Rural financial cooperatives are user-owned financial intermediaries and significant providers of financial services in rural areas which required sound financial www.theinternationaljournal.org > RJEBS: Volume: 02, Number: 06, April-2013 Page 71
Page 2 and 3:
Table of Contents Articles PERFORMA
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servicing, and the policies not mee
Page 6 and 7:
The Self-Help Group members get inc
Page 8 and 9:
Are female workers more productive
Page 10 and 11:
For the purpose of including explan
Page 12 and 13: several different, competing logist
Page 14 and 15: Fisher, R.T. (2001), “Role stress
Page 16 and 17: A Comparative Study of NPA of State
Page 18 and 19: processes. Instead of fixing target
Page 20 and 21: Agriculture Crisis and Sustainable
Page 22 and 23: Table 1. World Cereal production ,
Page 24 and 25: Expanding biofuel production The ex
Page 26 and 27: percent of the world’s population
Page 28 and 29: OECD (Organisation for Economic Co-
Page 30 and 31: It can provide the earnings needed
Page 32 and 33: The incubator will also work toward
Page 34 and 35: factor. This is not an easy proposi
Page 36 and 37: ROLE OF LOCAL SELF GOVERNMENT IN LE
Page 38 and 39: During the last season red onion fa
Page 40 and 41: Table Mch2 Coef. Std. Err Z P>/Z/ A
Page 42 and 43: lack of capital. The local farmer o
Page 44 and 45: It may be seen that alleviation of
Page 46 and 47: Table - 2 Progress under Bharat Nir
Page 48 and 49: References Chandrasekhar, B P., et
Page 50 and 51: existing cooperative legislation, r
Page 52 and 53: 1.3 THE RESEARCH QUESTIONS 1. What
Page 54 and 55: Table 2: Earnings and Cost Allocati
Page 56 and 57: have an adequate amount of capital
Page 58 and 59: programs and the union was doing on
Page 60 and 61: total assets to other key areas, it
Page 64 and 65: management; Gohe cooperatives savin
Page 66 and 67: Significance of asset quality of St
Page 68 and 69: iii) iv) Doubtful Assets:- a) Doubt
Page 70 and 71: atios and solvency ratios are taken
Page 72 and 73: Ratio of around 3% during 2007-08,
Page 74 and 75: sufficient to draw an inference in
Page 76 and 77: The observed R 2 and F statistics m
Page 78 and 79: Board Composition, Ownership Struct
Page 80 and 81: size as well. During our study it w
Page 82 and 83: standards prevailing in the country
Page 84 and 85: The procedure produces two tests of
Page 86 and 87: hoc test for pair wise comparisons
Page 88 and 89: e said that the board size affects
Page 90 and 91: high-tech small and medium-sized en
Page 92 and 93: Table no.8 - Multiple Comparisons T
Page 94 and 95: Abstract Corporate Social Responsib
Page 96 and 97: the participation of various level
Page 98 and 99: Supplier Relations As stakeholders
Page 100 and 101: CSR initiatives of companies should
Page 102 and 103: Corporate Social Responsibility Pra
Page 104 and 105: 2011, this district received surplu
Page 106 and 107: In the case of marginal farmers and
Page 108 and 109: Findings From the above analysis it
Page 110 and 111: 2. Innovation: Meaning and Dimensio
Page 112 and 113:
data appropriately. Inferences were
Page 114 and 115:
The regression analyses as shown in
Page 116 and 117:
Role of Self-help Group in Socio-ec
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10% for women and men respectively
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MoRD has been constantly reviewing
Page 122 and 123:
76.6% units were found to be existi
Page 124 and 125:
10.Timely release of adequate loans
Page 126 and 127:
Standard of living of Rural Fisher
Page 128 and 129:
Table 1 denotes the infrastructure
Page 130 and 131:
FISHING METHODS USED BY DIFFERENT A
Page 132 and 133:
CONCLUSION Most of the fisher folk
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Objectives: The following objective
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Policies of the Government will hav
Page 138 and 139:
Wastage Schedule (Onion) Sl.No. Pri
Page 140 and 141:
At the end of 2008 the entire world
Page 142:
Conclusion: 9. The inflation can be
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