Examining Microfinance Loan Repayment Challenges and Procedures by Small Business Owners: The Case of Vikenge Village, Morogoro, Tanzania

The research surveys the factors affecting the ability of small business owners in Vikenge village to refund microloans. This study uses institutional theory framework to investigates the constraints encountered by these firms, their means for handling these constraints, and offer hints for improvement. Applying a qualitative research design, semi-structured interviews were performed with 13 small business proprietors. Participants were purposively selected due to their experience in microfinance lending and efficient reimbursement. Through thematic analysis, substantial issues concerning repayment challenges, techniques, and recommendations for enhancement were proven. The survey reveals a variety of obstacles that influence the repayment of loans, for instance; unexpected events, personal and familial matters, fluctuations in the economy, seasonal fluctuations in business, and complications with cash flow. Methodologies to repayment include strategies like saving money daily, options for flexible repayment, clear communication, and seeking outside financial assistance. Survey respondents also offered supportive recommendations, such as using loans for their intended purposes, decreasing interest rates, allowing more flexibility in repayment schedules, providing enhanced customer education and support, ensuring loan amounts are appropriate, and improving monitoring and collection procedures. This research survey enhances value to the current body of knowledge by delivering detailed analysis on the repayment of microfinance loans in small businesses in Vikenge village. The results proposed practical recommendations for microfinance institutions to acquire tailored repayment strategies that meet the varied requirements of borrowers, eventually leading to improved financial accessibility and long-term viability.