Clients’ Demographics and Strategies Influence on Loan Repayment during Covid-19 Pandemic: Evidence from Tanzanian Savings and Credits Cooperative Societies (SACCOS)


  • Joseph Magali


COVID-19, Loan Repayment strategies, SACCOS, Demographic factors, Tanzania


The study assessed the influence of the clients’ demographics and strategies on loan repayment during the Corona Outbreak (COVID-19) in Tanzania. The study used Morogoro and Mvomero Teachers SACCOS (MMTS) as its case. The cross-sectional and explanatory designs, survey strategy and random sampling were applied to selected 98 SACCOS borrowers for the study. IBM SPSS software was used to enter the data and analysis was executed using descriptive and Ordinary Least Square (OLS) techniques. The study unveiled that COVID-19 deteriorated the loan portfolio during the pandemic. The findings further uncovered that the business owners were mostly affected by the pandemic and the majority of the borrowers repaid their loans using alternative sources of income. The regression analysis revealed that the amount of loan borrowed positively and significantly influenced the loan repayment while age, level of education and economic activity negatively and significantly influenced the loan repayment. The study concluded that during the COVID-19 pandemic, the repayment of loans for Tanzanian SACCOS was not conducive because of poor repayment strategies and the influence of clients’ demographic factors. The study recommended policymakers to design policies that would enhance the repayment of loans for SACCOS borrowers during pandemics. The study contributed to the contingency theory by recommending borrowers’ diverse loan repayment strategies during contingency situations.

Author Biography

Joseph Magali

The Open University of Tanzania