Education and Monitoring Key to Reducing Loan Defaults in Ghana
Credit Unions in Ghana are facing challenges with loan defaults, which can threaten their sustainability. A study looked at factors influencing loan defaults in Credit Unions in Kumasi. They found that education level, loan diversion, monitoring, marital status, and income all play a significant role in loan defaults. To reduce defaults, it's important to focus on improving credit education, implementing effective loan monitoring, and developing robust loan appraisal systems with credit scoring.