An assessment of credit delivery in microfinance: a case study of First Allied Savings and Loans Limited

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First Allied Savings and Loans Ltd. which was established in 1996 as a Non-Bank Financial Institution have attracted a growing attention in Ghana. FASL has nine branches throughout the country. FASL commenced operations with the mission of offering convenient access to efficient, innovative and responsive financial services to the micro and small scale entrepreneur on a sustainable basis for the mutual benefit of all stakeholders. FASL offer their clients a variety of products and services. FASL has four major lending products: Commercial (Individual) loan, Susu, Allied Mpontu and Travel Credit. The study mainly sought to assess the responsiveness of customers to the products of FASL and the extent to which the Microfinance programme has also sustained the institution. A random sampling technique was adopted. Two hundred and fifty customers and staff of FASL were sampled to administer the questionnaire. All the two hundred and fifty people to whom the questionnaires were administered responded and thereby given a 100% response rate The study revealed that, the microfinance scheme at FASL has helped low-income men and women to overcome the formidable barrier in gaining access to mainstream financial services and has also sustained the institution. The study, therefore recommended the need to set up an authorized body that would be charged with the regulation, supervision and the development of the microfinance sector.
A thesis submitted to the Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the requirements for the award of Master of Business Administration,August-2008