Abstract:
The purpose of this study is to assess factors affecting credit collection performance of awach
microfinance. To achieve this objective, both descriptive and explanatory research designs were
employed. The target population comprised all customers of Awach Microfinance, from which a sample
of 384 respondents was selected using probability sampling, specifically the simple random sampling
technique. Data were collected through structured questionnaires and interviews. While qualitative data
from interviews were analyzed subjectively, quantitative data from the questionnaires were examined
using descriptive statistics, inferential statistics, correlation, and regression analysis with the aid of
SPSS software. The study identified bureaucracy, borrower education and training, risk management
practices, and social collateral as key factors influencing credit collection performance. The results
revealed a statistically significant and positive relationship between these factors and effective credit
collection management. Specifically, streamlined bureaucratic processes, enhanced borrower training,
robust risk management systems, and strong social collateral mechanisms contribute positively to
improving loan repayment rates. Based on the findings, the study recommends that Awach Microfinance
strengthen its communication strategies to clearly convey repayment terms and build trust with
borrowers. Simplifying bureaucratic procedures and improving loan collection workflows are also
advised to enhance efficiency. Furthermore, implementing continuous training programs in financial
literacy and risk management for both staff and borrowers is essential. Encouraging borrower
participation in educational and community-based programs can foster stronger relationships and
commitment, ultimately supporting improved repayment performance.
