Saving terms, credit terms and the performance of Reapers Credit and Savings Union Limited.

Abstract

The purpose of the study was to examine the relationship between saving terms, credit terms and the performance of Reapers Cooperative Saving and Credit Society Limited (RCSCSL). The study was guided by the following objectives: to establish the relationship between saving terms and performance; to establish the relationship between the credit terms and performance; to establish the relationship between saving, credit terms and the performance. Literature was reviewed and a conceptual framework was developed to guide the researcher in analyzing the relationships between the variables. Quantitative methodologies were used in analyzing the relationships. Questionnaires were used to collect the data and cross sectional and correlation research designs were adopted. The findings revealed a positive and significant relationship between saving terms and performance, and a positive and significant relationship between credit terms and performance. In addition, saving terms were positively related to credit terms. A regression model was used to determine the degree to which the predictors which were, saving terms and credit terms could explain the dependent variable which was Performance. In this regard, the findings showed that the credit terms are a better predictor of the performance than saving terms.