DECLARATION

I declare that this is my original work and has not been presented for award of a degree in
any other University or any other institution of higher learning for examination purposes.
Signature………………………………… Date………………………………….
This report has been submitted for examination within my approval as the university
supervisor
Signature………………………………… Date………………………………….

i
CERTIFICATION
This is to certify that this report titled “The effect of loan delinquency Of
MAWOCCUL.” meets the requirements and regulations governing the award of
bachelor’s degree in business administration by the ministry of Higher Education, hence
approved for its contribution to scientific knowledge and literary presentation.
HEAD OF DEPARTMENT
Name: Dr Visimih William
Signature:
Date:……………………

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DEDICATION
This piece of work is dedicated to the NCHE family and my fellow mates in class.

iii
ACKNOWLEDGEMENTS
This report could not have been a success without the help of many people academically,
financially and morally.
I give special thanks to my supervisor Mr Amstrong Peace for guiding me throughout this
great work
I also thank the entire NCHE’S Family for their love, advice, moral and financial support
in my life and educational career.
Moreover, my hearty thanks goes to the Manager of MAWOCCUL for approving my
application to carry out my internship in this organization and also the entire staff of
MAWOCCUL that helped me in acquiring professional skills during internship.
Last but not the least; I acknowledge the encouragement of my friends, my classmates
that have assisted me directly and/or indirectly in my studies.

MFI: Micro Finance Institution

HICM; HIGHER INSTITUTE OF COMMERCE AND MANAGEMENT
NWR: North West Region
Uba; university of Bamenda

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CHAPTER ONE
1.1GENERAL INTRODUCTION

1.1.2 Background of Report.

The liberalization of the banking sector in Cameroon has encouraged the establishment
and growth of micro finance institutions. This sector has become very competitive and
seeks to help provide micro credit and other financial services to different types of groups
of people such that even individuals in the grass root can benefit. Despite the number of
micro finance institutions in the country, most of them are vulnerable and do not survive
in the long run. This is due to their inability to provide services which surpass or meet
customer status and expectations. Though members judge services from a number of
perspectives such as, dressing code, loan delinquency, the structure of the organization,
and so on, loan delinquency remains one of the key qualities that members use to
evaluate quality service, which is the inability to form members to pay their loans. The
ability of members to effectively communicate with the workers of the union will go a
long way to improve the performance of the organization. Loan delinquency is a general
problem in most MFI especially in the loan department because they interact constantly
with different people having different believes, different sex, age and respond differently
to situation. Taking into account the managerial competency of the organization,
customers remain the main determinant of business survival. Therefore, every successful
organization must put in place systems, policies and structures that will satisfy the
different needs of customers and objectives of the organization, this will go a long way to
attract, maintain and sustain customer loyalty to the organization. The importance of
satisfying customer expectations cannot be over emphasis. However, for organizations to
meet its objectives, it requires much effort given the fact that it is difficult to perceive
customers’ behaviors. Customers have different needs and interpret and respond
differently to services offered them, it will require skills, knowledge, research and good
judgment to be able to meet these needs.

1
1.2. Problem {the effect of loan delinquency to MAWOCCUL

LOAN DELINQUENCY; this is a situation whereby a member of a credit union or a

bank contracts loan and is unable to pay in time or to even pay. This situation affected
MAWOCCUL negatively in the sense that most of all those who contracted loan cant
pay due to the current financial crises and the fact that they are not just clients but
member makes it hard for them to recover the loans using the hard ways.

1.1.3Main Objective

 The main objective was to investigate on the role of loan delinquency to micro finance
institution

1.3.1 Specific Objectives

 To evaluate the impact of service differentiations and the performance of micro finance
institutions.
 To examine the impact of service differentiations to customers’ expectations.
 To determine the relationship between organizational performance of micro finance
institutions.
 To examine the impact of services differentiations to customers expectation.
 To blend the theory of the classroom with practical.
 To develop professional skills and techniques directly applicable to my career
objectives, by closely observing the way professionals go about their work, as well as
asking questions in order to learn from them..

1.4 METHODOLOGY

This clearly shows the methods that were used to validate the methods of data collection;
samplings design method, tools of data analysis and the definition of variables.

The data for this study was obtained from primary data which involve going to the field
and secondary data obtained from passed written document.

2
To acquire all this data, I used the interview method. This is a situation where there is
one person called the interviewer who does the questioning and the other person who
answers calls the responder.

Thus to satisfy the objectives of this report, the loan department was chosen because of
the relationship they create with the enterprise and the rest of the world.

1.5 Definition of Terms Used

1.5.1 Withdraw slip; this is a small document, pink in color which the member fills and
present to the cashier before withdrawing from his account.
1.5.2 Payment slip; this is a blue printed document which the member fills and present
before he deposit money in his account.

1.5.4cash in transaction. The cash in records the amount that comes in from each
member while cash out records the amount that was withdrawn by each member.
5Cs: Capital, Character, Capability, Condition, Collateral: For a member of
MAWOCCUL to be able to obtain a loan, he or she should be able to meet up with the
principles of 5C i.e. with capital, the member should have shares or capital in the
organization before a loan can be granted, for character, the previous loan repayments of
the member is been taken into consideration as well as the saving habit of the member.
The capability of the member is also considered i.e. his ability to repay the loan based on
his or her savings in the organizations. The collateral presented by the member is also
been considered i.e. the collateral should be able to cover the loan.

1.5.6SWOT: Strengths, Weaknesses (internal factors affecting an organization),

Opportunities, Treats (external factors affecting an organization).

1.6 PRESENTATION OF MAWOCCUL

Section One: History, Evolution and Identification of MAWOCCUL

1.6.1 Introduction
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This chapter constitutes a greater part of this report as it presents the historical
background of MAWOCCUL. In this chapter, we will describe what MAWOCCUL t is
all about, look at the genealogical of the organization, the mission, steeps to become a
member, the products and services of the organization, the organization structure.
Furthermore, in this chapter we will have a view of the activities carried out by the intern
during the internship period. . MAWOCCUL operates accounts such as savings
accounts, deposits loans, shares, overdrafts and daily savings accounts.

I.6.2 the History of MAWOCCUL

(MAWOCCUL) MFI can easily be described as a biblical Monster seed turned into fig
tree.
MAWOCCUL started as a discussion group in the year 2019. The brain behind this
“meeting” group is CHIEF FOSSONG CHARLES. The main activity of the group was
to see how they could come out with a legal group whereby member could save money
and borrow with low interest rate. On the 10th of October 2019, the dream of CHIEF
FOSSONG CHARLES came to passed as the credit union name MMOCKMBIEV ALL
WOERKERS COOPERATIVE CREDIT UNION was created in conformity of the
OHADA uniform act of the right of cooperative and national cooperative law, after a total
subscription of the initial share capital of TEN MILLION FRANCS and payment of the
amount of TWO MILLION FIVE HUNDRED TOUSANDS FRANCS
(2500000) weekly equivalent to 25% of the initial share capital . the document was
signed by all members present.

I.7 Membership

I.7.1 How to become a member in MAWOCCUL

Gaining membership in MAWOCCUL is easy and voluntary. Membership can be for an
individual or a group such as schools, NGOs, associations etc. however, for workers it is
compulsory to be member in the union. The procedure for membership into
MAWOCCUL is not the same between an individual and a group. The following

4
conditions must be fulfilled for an individual and a group. The following conditions must
be fulfilled for an individual to become a member.
Procedures for membership as an Individual

1. The individual must present himself in any of the branches in Bamenda, Douala,
Yaoundé etc.
2. Must be a holder of a current National Identity Card or passport.
3. Should have a proper address.
4. Present two passport size photos (4*4).
5. Pay a registration fee of 2500 FCFA.
6. Pay building contribution fee of 5000 FCFA
7. Start with the acquisition of any number of shares not more than 60 shares and share is
1000 FRS.
8. Start saving or deposit account with any amount.

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Procedure for membership as a group

a) An application for membership from the chairman of the group of the specifying the
parties to operate the accounts with their specimen signatures. Also, specifying the
number of signatures to be used during the withdrawal. Either two or three.
b) Present an extract of the minutes during which decisions was taken for an account to be
created for the or group.
c) A registration certificate from a competent authority.
d) A copy of byelaw or article of association.
e) A copy of national identity card of signatories.
f) One passport size photo of each signatory.

Section two: Organizational Structure and Functions of the various Organs in

MAWOCCUL

1.8 Organizational Structure of MAWOCCUL.

MAWOCCUL has a simple but hierarchical organization structure ranging from the
General Assembly; the supreme authority to the daily collectors classified in to three; top
management middle management and floor management.

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 1.8.1 ORGANIGRAM OF MAWOCCUL
`

BRANCH MANAGER

MARKETER LENDING OFFICER

ACCOUNTANT

MEMBER SERVICE TELLER

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Source: MAWOCCUL
Before we analyst the various organs, it is important to note that the intern carried his
internship study at Bamenda II food market branch. So most of the information provided
is a report gotten from the branch office. the management structure in MAWOCCUL and
will go ahead to look at the various departments.

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  Branch manager

He sees it that the overall goal of the union is realize by constantly supervising the day-to-
day operations of the union. he evaluates the performance of the organization to other
branches and develops new ideas or service to better satisfy members. he ensures that the
properties of assets of the union are properly handled and serve the purpose for which it
was acquired.
he access and evaluate the liquidity situation of the organization to know and make sure
that the money is always available to meet the member’s needs.
he represents the union; provide periodic reports regarding the branch operations, present
the balance sheet and other important documents
Account clerk

The account clerk educates individual who desire to open the account with the union on
the modalities they have to follow and how to manage their accounts. He records new
members in the members register, ensure the safeguard of the register and also to help
members to fill the members’ registration from. He updates member’s passbook and post
member’s daily transaction into their individual ledger accounts. Also, he operates petty
cash for daily expenses of the union and keep records of such expenses. If members wish
to withdraw from their saving and the amount is above 500000, the accountant must
approve before withdrawal is done.
TELLER

The teller assists the accountant in maintaining clean records. In MAWOCCUL all the
cashiers are women. They receive member’s deposit, pay out cash and ensure that interest
and charges together with other information are correct in the various slips before
execution.
marketer/ membership department

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She is in charge of marketing out the various services and products MAWOCCUL
offers. Creating of accounts and gets feedback on customers satisfaction
Various Departments in MAWOCCUL

MAWOCCUL has four main departments, accounting department,

Loans department,
Control department,
Member service department,

 Loans Department
The first day, we were welcomed by the marketer and advice on how to go about in the
organization, on our dressing code, our behavior and for the interns to be time conscious.
The intern has clock cad in which the record the time arrived and the time they leave the
organization. This system applies with normal employees in the organization whose start
work at 8am and end at 5:00pm.

1.8. 3 Function

1.8.3.1 Mission of MAWOCCUL

MAWOCCUL has five primary mission statements;
1. To act as a safe Micro-Finance institution

2. Encourage regular savings and wise borrowing amongst members at low interest rates.

3. Provide a broad range of products and services in a sustainable and profitable manner.

4. Provide general membership education training if board committees and staff.

5. Practice the value of equality, equity and social concern to the community.

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1.8.4Account Operated and Services Rendered by MAWOCCUL.
Products and services offered by
Initially, Micro finance institutions like MAWOCCUL are non-profit making
organization and so structure their system in a way that provide high quality products and
services to members as a considerable low interest rate. As a service organization,
provides four main service-accounts which are savings, shares, loans and deposits. The
organization also provides special.
Accounts to members these accounts are open to members who are recognized by the
organization to the active members. These accounts include school fees account,
university or Christmas account, children or under 18 account. Member savings balance is
the first security to be considered before granting loan. The organization pays monthly
premium to cover the member`s savings up to a maximum of one million FCFA at death.

1, 8.5 Accounts Operated

Savings account

This is an account which the organization provides to enable members save their money.
Even though members can save whatever they have and at any time, the organization has
set limits or conditions on how this account should operate. For a member to be
considered active or a regular saver, he or she must save at least twelve times within the
four quarters of the year and a minimum of 1000 FCFA at any one time of saving and
interest on saving is 5-6%. The saving account yield interest to members and so members
must notify the organization one month before withdrawer if not he or she pays 1%
charges on the amount. The interest on savings is credited to members at the end of the
year.
Share account

This account enables members to know their position in the organization. The ability to
exercise voting and participating decision making in the organization is determine by the
amount of shares a member has. In MAWOCCUL the share price is 1000 FCFA and the
initial amount of share a member should have to be considered a shareholder is 60 share
11
which is equivalent to 60000 FCFA, however, In other to meet the needs of people at the
grass root, the organization has made it possible that an individual can start with 10
shares which is equivalent to 10000 FCFA. Thus, the share account enables members to
know their level of ownership of the business.
Deposit account

This account permits members to withdraw their money at any time with prior notice.
Money in this account yield no interest to the member for this reason the member
incurred charges to the organization for keeping the money MAWOCCUL charges on
deposit are as follows

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10000 to 1000000FRS = 100 FRS charge
101000 to 300000 FRS = 200 FRS charge
501000 to1000000 FRS = 300 FRS charge
Loan account

This is an account in which the credit of the members is recorded. Credit facilities are
long and medium term loans. As earlier mention, balance on savings is the first security
before loan is granted. After an individual is registered as a member he or she must by the
loan policy book and the by-law book. The loan policy provides and specifies all
condition required before a member is eligible to obtain loan. It contains information like
the application procedures, loan approval authorities, type of loan, duration of loan, loan
securities amortizations, and loan delinquencies etc. there are basically six types of loan;
social and consumption loan; business loan; agricultural loan, emergency loan, real estate
loan and education loan. Special loans include; overdrafts, syndicate loans, express credit
loans and short term loans.
Special service or Account offered by MAWOCCUL
Children`s or under 18 account

These are account members open for their children. This account enables member to
handle any eventuality that may arise as they are expected to hand over this accounts to
their children when they are of age 18 and above. Money kept in this account earns
interest which is credited at the end of the year.
Group`s account

This account is open either by a group of people, union, association or an institution.

For example individuals belonging to a “njangi” group, other credit unions, school and
other business organizations. This account also earns interest which is credited at the end
of the year.
1.8.4 Services offered by MAWOCCUL
Money transfer services

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MAWOCCUL being a micro finance institution that deals mainly with finances and the
risk associated in moving money in cash over long distances, the organization has set up a
money transfer service which is save, risk-free and permit members to carry out financial
transaction over long distances without having to move over long distances. The money
transfer services enable members and non-members to send and receive money using
MAWOCCUL network. This is only possible when transfer is done between branches.
Payment of Salaries for Civil Servant and Private Sector

This service had been introduced to assist members who are salary earners. Members who
are civil servants can now receive their salaries directly from the union office, this will
enable them to carry out their financial transaction easily and benefiting from the
facilities offered by organization.

Counseling
A highly qualified staff is always ready to give advice on financial management and
other matters at no cost.

Daily collection.
MAWOCCUL have daily collectors commonly known as,( ACCAWOH) with their
expertise, they can help by collecting money from people at their localities for better
security at the union. Loan can be gotten base on daily collections. This services also
facilitates loan repayment which can be done daily.

Money transfer
This is another service provided by MAWOCCUL to facilitates the sending and
receiving of money. Eg mobile money, western union.

Agent of payment.
They help the government and other companies to pay their workers and also as a
medium between the public and state own public enterprise. E.g. eneo Cameroon.
14
CHAPTER TWO

INTERNSHIP ACTIVITIES

Introduction: During the period of internship, the intern carried out the various activities
in the various departments.

2.1 Report on activities

2.1.1Loan Department
In the first week of internship, the intern was in the loans department. The intern worked
in the loan office. The first requirement to operate in this department was to acquire the
loan policy book. Most of what the intern did was observation and asking questions. It is
also important because it id the office that generates the highest income through interest
from loans and other means. These activities include;
It is the office where all loan forms are filled
It decides the length of time of a loan depending on the purpose, type and amount of the
loan.
Minimizing loan losses and maximizing dividend to members
Act as counselors to members

Types of loans
Loans are categories into two which are productive and nor productive loans an these two
types all have a common term which are also short less than a year, medium 2-5yearsbd
long term which is above 5 years.

1 productive loans; these are loans which are given out for business purposes and
agriculture. It can also be said as a loan which heals income. Overdraft is another type of
loan granted only to members having salary account and it is usually granted for a month.
None productive loan; these are loans taken for consumption purposes like education,
health and the rest.
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The intern observed practical situation and procedure which members undergo before
they are given loan. This procedure is based on the 5 Cs the member is examined
carefully and process takes time. Here, the member past loan situation is analyst, the
business he or she is doing, the cash flow of the business, the reason for the loan, the
collateral security, an eye witness. After the member is thoroughly examined and found
fit to acquire the loan, he or she buys a loan form which is 2500FCFA.
The late payment of penalties goes to the borrower who fails pay their loans and interest
in installments at the due date. Such loans must be loans above savings. An organization
needs security for anybody who is applying for such a loan added to the fact that the
borrower must have the ability to repay the loan, the additional guaranties to encourage
loan granting and also serves as a last resort for recovery

3.1.3 Member service department

The second week was in the member service department. Here, the intern carry out four
main functions; filling members slip (withdrawal and payment slips), fill members saving
application, from sorting of members signatory card of approval, and sorting individual
ledger card.
Each time a member comes to the union for example to save, the intern receives the
members passbook and examines to see if he or she is eligible to withdraw from for the
account and checking his or her saving balance. Member now presents it to the cashier.
The cashier records the transaction and executes payment then sends the passbook
alongside the receipt which is use to update the individual ledger. The intern collects the
passbook and looks for the member’s ledger card then present the ledger to the member’s
service for updating. After which the member is given his or her passbook.

2.1.4 Marketing department

The third week, the intern welcomes and received members as they come in to save, and
enable them fill their payment slip. Before filling, the intern verifies if the member has a
16
valid National Identity Card and if the name corresponds to the name on the passbook.
Generally, a member is not allowed transaction on behalf of another except when the
situation is critical and necessary document presented like authorization from the hospital.
After filling the payment slip, it is presented to Madam Stella who verifies the member’s
situation and updates his or her accounts in the database.
After the one month internship, the intern can affirm that the success of MAWOCCUL
till date is based on this on the policies, manager system and organizational culture of the
enterprise. However, after the study, the intern identified four main problems in the
organizational i.e. the absence of product or service-differentiation, absence of job design
techniques, communication problem, time, and, adaptability to new management
information system. It is important to note that all these problem affects or influence
customers’ perception of quality of service.
In the next chapter, we are going to analyst the impact of the product or services
differentiation on customers’ satisfaction.

Accounting department
The rest of weeks were all put in at the accounting department because that is his main
aim of studies. There, the intern at the accounting department noticed mostly bank
reconciliation, balance sheet of companies, financial statements and inter branch
transactions.

Bank reconciliation
It is a way by which the bank operating with MAWOCCUL sent q bank statement
showing the detail transaction carried out with on behalf of MAWOCCUL when the
bank receives money he credits MAWOCCUL account and when he pays out money,
he debits MAWOCCUL account.
Inter branch
The statement of account of the main office is compared with that of the branch in
question and transactions which have not been ticked are now affected into the system
2.2 Problems or Difficulties encountered during the internship

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These are barriers or difficulties that hindered the intern to go through his or her program
smoothly. Some are as follows;
The work was carried out in the month of August which is typically the month of
torrential rainfall, coupled with the bad nature of roads which hindered transportation.
Sometimes, there was no work, which leads to boredom.
The study was not carried out as expected because of congestion of students which
did not give enough time for the intern to fully carry out the research properly and the
covic-19 pandemic
Insufficient computers, only workers had computers at their disposals, and there were
no spare computers for the interns.
At the initial times, the intern faced difficulties due to the newness of the environment
and had to take time to adapt.

METHODOLOGY AND SWOT ANALYSIS OF MAWOCCUL

3.1.2 Ignostic and manifestation of the problem

Despite the good objectives of MAWOCCUL most members still do not respect the term
loan repayment. Some members end up paying very late or not even paying at all.

A loan is said to be delinquent when the repayment date is late or overdue. A delinquent
loan however becomes a default loan when the chances of recovery become minimal.
Default may occur if the debtor if either unwilling or unable to pay the debt. Delinquency
is measured because it indicates the risk of loss, warning of operations problems and may
help to predict how much of the money will eventually be loss.

Warue {2012} pointed out that the chance MFI may not receive its money back from
borrowers with interest is the most common and serious vulnerability in MFI. According
to her, most MFI loans are unsecured delinquent loans can quickly spread from a handful
18
of loans to significant potion. MAWOCCUL being a MFI is not exempted from this
view as its records an increase in loan delinquency for almost four years now due to
political instability.

This therefore prompt the intern while carrying out his activities in the organization to
come out with some specific task outline below which enable him to examined the
problem identified

To identify some of the cause of loan delinquency by MAWOCCUL members,

To assess the measures that that could be used to solve or minimized the rate at which
loans become delinquent in MFIO

3.2 CAUSE OF LOAN DELINQUENCY

3.2.1EXTERNAL CUASES

External causes of loan delinquency to MFI are those beyond the micro finance
institution.

One of these externalities is natural disasters. Natural disaster such as drought, flood
and earth quakes are part of contributing factors to loan delinquency. These disasters
affects or hinders borrowers projects for example if a member builds a hustle in bafussam
and the recent earth quake which just took place affects it, he will be on able to repay
his .on on time

Political instability; an example of such is the current political crisis in Cameroon

affecting the northwest southwest regions. A member who contracts loan for business but
is unable to sell because of so many lock downs of working days will find it very hard to
repay his loan on time

Adverse state of the economy; when an economy witness depression, the probability of
loan delinquency becomes very high as compared to when it is booming. This is because
during depression liquidity faces challenges and expected returns from projects becomes
very low thereby affecting loan repayment.
19
Change in government policies; this for instance can be seen in a situation when
government interferes in the operations of a customer’s project when he intends to
generate income to repay his loan. E.g. can be in the form on increase in tax thereby
reducing profit margin hence repayment might not be done in accordance with terms
agreed on when tax was moderate now leading to loan delinquency.

Poor business plant; the client borrower may lack management skills of the business and
technical knowhow like keeping of books record.

3.2.2 Internal cause

This occurs when the organization loan structure is poorly set up and managed. e.g is
when a loan officer grants a loan without a full consideration agreed in the loan policy of
the MFI and maybe because of past experience. Owing to the fact that economist is
dynamic and fast changing and granting a loan on past experience may lead to
delinquency.

Inside lending; this occurs when loans are granted to employees of the organization
without following institutional organization loan policies.

Improper appraisal techniques by loan officers; this occurs when loan officers conduct
an evaluation of the viability of the loan purpose and may come up with inappropriate
judgment pertaining to issue like productivity of the business and the progress being
made. He may fail to note variation between the proposal and reality thereby leading to
purse late payment

High interest rates; the main aim of this institutions is to make profit and satisfy its
members and so, most MFI put in high interest rates which they themselves know it will
be difficult for members to repay loans.

Tribalism; this can contribute to loan delinquency in the sense that loan officers
because of their tribal relationship with people, they issue out loans without proper
checking of the collateral or following the company policy forms.

20
Bribery and corruption; when loan officers regards or have long throat for money, a
customer without a security bribe and contacts loan and him the customers knows very
well that he has no security will make him not to consider the terms of repayments and
even not to repay the loan at all thereby leading to loan delinquency.

3.3EFFECT OF LOAN DELINQUENCY IN MAWOCCUL

It slower portfolio rotation; delay repayment will negatively affect MAWOCCUL returns
on investment especially loan. This will therefore hinders the ability of the organization
in granting of further loans to other different members with different investment portfolio

Increase in the collection cost; MAWOCCUL can witness the increase in the cost of the
loan such as visits, analysis and legal cost.

Threatening of MAWOCCUL long term survival. The delay in payment may hinder
investments of such funds in other projects thereby leaving MAWOCCUL long term
sustainability at stake.

Loan policy may also lose its credibility; as a result of delinquency, deviation between
expected repayment period and the actual period renders the lending system inefficient.

Delinquency leads to delay earnings MAWOCCUL expects earning within a given time
period. When late repayments of loans are made, it renders MAWOCCUL to meet up
with its commitment and obligations on time such as taxes.

Bad debts; this is when expected principal and interest have not been fully repaid and no
chance of feasible repayment. Written off loan requires recapitalization of
MAWOCCUL. Since loans are assets to MAWOCCUL, written off loans will reduce
the assets of MAWOCCUL and also its ability to apply for further loan in bigger
financial institutions.

3.4SWOT ANALYSIS OF MAWOCCUL

3.4.1 The Strength and Weakness of MAWOCCUL

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Like every successful business organization, MAWOCCUL has strengths and
weaknesses. The strength is that factor that enables the organization to perform its
operation while the weakness either internal or external factors that limits the
organization operation.

3.4.2 The Strengths of MAWOCCUL

The first strength the intern observed is the managerial system used in the organization;
MAWOCCUL has a well-built management system from the branch manager,
accountant, internal control and member service. Employees in this department are young
and dynamic and ensure efficiency and effectiveness in the worker place.
Secondly, is the organizational culture? The organization has a positive organization
culture that encourages interaction and hard work amongst employees. This is expressed
with the uniform code, which is applied to all employees. Even though, problems exist in
every organization especially between employees, it is difficult to observe this
phenomenon in MAWOCCUL. The rate of interaction and the flow of information
between employees from the main office to the branch office are very cordial. This
culture creates a positive image to the organization and in the mind of the member and
enhances trust and customer loyalty.

The location of the office: the office is located in a very strategic place where business
activities activity are booming every. The union is situated at food market which is soon
becoming the heart of business in Bamenda. This location enables not only big business
but also individuals and the grass roots 34

3.4.3 The Weaknesses of MAWOCCUL

During the internship period, the intern observed the following weakness:
Time: members spend a lot of time in the organization. Members spend about 30 minutes
in the office, this discourages members.

Absence of job design: job design helps to introduce new workers to new task in order to
overcome the boredom of doing the same task for long. Many organizations are adopting
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these polices, not only to overcome monotony but also to help diversify employees skills
and encourage full utilization of T-shape employees (employees who can handle two or
more task in the organization). In MAWOCCUL is common sometimes to see
employees sleeping on desk or waiting to receive members especially those working at
the back office.
identify when searching. This creates delay in the union.

Insufficient promotion
Competition as a result in an increase in other unions and other financial institutions
offering same services is seen here as a problem faced in MAWOCCUL.

Poor management of employees.

When an employee or when employees goes on leave, he/ she is not replaced with a
temporal worker there by putting too much load on the rest of the workers who are still to
go on leave.

Opportunities and Treats of MAWOCCUL.

This chapter dwells on the many opportunities that MAWOCCUL has to become a
veritable partner in micro financing in the North West Region. But like any other
organization, it also has some treats. First we look at the opportunities and then the treats.
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3.4.4Opportunities Of MAWOCCUL
Following the SWOT analysis, the opportunities of an organization, are those factors
from outside the organization which gives the organization room for growth and
profitability.
Again, MAWOCCUL is operating in the heart of the town in the North West Region
where business is booming. This makes it easy for members to access the organization.
In addition, MAWOCCUL has many opportunities in the North West Region which is
fast growing in population due to the creation of the University of Bamenda and several
private higher institutions of learning. Because of this rapid growth there is need for
business and therefore, people will need the services rendered by the MAWOCCUL
being a micro finance organization.
Finally MAWOCCUL is one of the biggest recognized Micro finance organizations in
North West Region, and they gain funds from professional interns, grants from the
government and other international organizations to help the organizations to raise funds
in order to effectively implement its stated objectives.
3.4.5 Treats of MAWOCCUL.
The treat faced by an organization refers to those negative factors from outside the
organization which can cause the organization to fail in its endeavor to achieve set goals.
MAWOCCUL in the North West Region competes with several other micro finance, for
example, azire Co-operative Credit Union, Police Co-operative Credit Union, etc., which
limits MAWOCCUL from rendering outstanding services. If MAWOCCUL does not
achieve such outstanding performances, then certain competitors might render better
services offered by MAWOCCUL and eventually gain their members.
Equally, MAWOCCUL is situated at the heart of the town, where there is so much noise
around and this makes effective communication difficult.

RECOMMEDATIONS

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Proper customer/client selection; this entails that the leading officer should follow proper
procedures, rules and regulations to select able customers when granting loan.

MAWOCCUL should have clear and effective policies which should be regularly
reviewed as customers’ behaviors changes every day. Credit supervisors should ensure
that credit officers follow the lending policies on daily basis.

Strict discipline; without strict discipline in MAWOCCUL administration and

management MAWOCCUL will find it very difficult to attain her goals.

Effective delinquency follows up procedures. Methods should be put in place to reduce

the rate of loan delinquency. Develop policies that list the steps one takes when loan
becomes past due.

Ensure that from the borrower’s perspectives, of late repayment and the cost of on time
repayments.

Setting up reasonable rate of interest to customers; this will reduce the loan on them and
enable them to repay on time thereby reducing loan delinquency. Quick follow up after a
missed repayment. Regular visit to homes and business of clients.

Conclusion
I will like to say that it was a great Experience i had in MAWOCCUL Bamenda. The
environment was very welcoming as I was able to learn many things and also discover
and propose solutions to the main problem identified.
For any MFI to effectively operate, effective measures to fight against loan delinquency
must be properly ensured in organization so as to ensure total satisfaction of its members

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and the goal/ objectives’ of the organization. It is often said, “a good product and service
markets itself”, and administration is sensitive to identify problems in the organization
especially when the problems are caused by humans. The board members or
administration judge the performance of organization from the rate of loan delinquency
affecting the organization. If they are unable to identify these qualities, members may
decide to leave the organization because they will think when the need loans it will not be
granted to them and will influence others who would have loved to be members from
joining the union. Poor proper loan management policies will therefore limit member’s
loyalty. One of the tools needed to create customer loyalty in MAWOCCUL is the
relationship the organization builds with the customer when the customer is of need of a
loan.

Reference

Oxford advance English dictionary 2015

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Annual report of MAWOCCUL 2020
Members register of MAWOCCUL
Nkwah felix (2009) "the banker"
Staff of MAWOCCUL
Warue (2012)
GOOGLE

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