Factors Influencing The Loan Recovery Performance From Beneficiaries: A Case Study Of Higher Education Loans Board

Abstract

This main purpose of the study is to investigate the factors affecting loan recovery at the Higher Education Loans Board in Kenya. Students benefit from the loans from HELB and their clear understanding that these loans should be repaid so that other needy students can benefit. Repayment rate is only 60%. There is a need to know why there is such a low repayment rate so that the situation can be amended and this is what this study intends to do. There the study will determine whether graduate employment status, follow up, government policy and loan characteristics affects loan recovery. Higher Education Loans Board will benefit from the findings of the study because the study will focus on loan defaults and the causes. The study adopted both qualitative and quantitative method research design. The population is HELB staff, numbering 120. The researcher used a sample size on 65 employees HELB. Pretesting was done which enabled the researcher to receive important feedback on how questions were to be recorded or restructured. The drop and pick method was used to collect data. The structured questions was used to facilitate in easier analysis as they are in immediate usable form; while the unstructured questions will be used so as to encourage the respondent to give an in-depth response without feeling held back in revealing of any information. The collected data was analyzed using descriptive statistics and inferential statistics; correlations and multiple regressions technique. After completing the study, the researcher compiled the data and performs data analysis. Thereafter, interpretation of findings in line with the study objectives and conceptual framework was done, followed by summary, conclusion and recommendations