Abstract:
The main objective of OCSSCO is to operate profitably in order to maintain its stability and
improve growth and sustainability by supporting small and micro level enterprises to reduce
unemployment rate in the country. However, West shoa Zone credit and saving Share Company
experience high levels of non-performing loan threatens viability and sustainability of the
institution and hinders the achievement of its goals. This study was aimed at assessing the level
of of non-performing loan growth rate and the related causes for the occurrence of NPL. Hence,
the study was conducted to assess non-performing loan in West Shoa Zone Oromia credit and
saving Share Company. To this end, the researcher has consentrat on borrowers,credit officers
and management of the institution to conductquestionneries, interview and collect data through
structured and semi structured questionnaire. This study used primary and secondary sources of
data, which is the data from the period 2020-2021 in comparison with the branches. This
research applies descriptive research design that describes the cause of nonperforming loan and
also possible challenges and corrective measures for the NPLs in the institution. As well as
explanatorty research design to explain the relation ship of the variables
The finding of this study shows the increment of NPL rate in the institution from time to time and
this is because of factors like types of loan in which the institution mainly focuses on, low level of
segregation of duty, inefficient analysis of collateral and business plan of customers, lack of
independency in credit provision process and appraisal. Despite of the fact that increase in the
level of NPL, the institution also take different measures to minimize the level of NPL such as
arranging training, applying different credit follow up techniques and awareness creatio
