CREDIT INFORMATION SHARING AND LEVEL OF LOAN DEFAULT IN DEPOSIT TAKING SACCOS IN MERU COUNTY, KENYA

Abstract

The study aimed at assessing credit information sharing influence on level of loan default in deposit taking SACCOS. The study adopted a descriptive research design. Descriptive statistics and multiple linear regression were used in data analysis. The study revealed that there exist a strong relationship between credit reports, credit scoring and level of loan default in SACCOS. However, the study concluded that credit information sharing significantly influenced level of loan default. The study recommends operationalization of regulations that can govern SACCOS on sharing information on non-performing loans to aid in risk mitigation. There is also need to extend credit information sharing to all other SACCOS including the non-deposit taking and utility service providers to increase data for borrowers’ profiling.