Effect of Financial Management Practices on Loan Performance in the Education Sector in Rwanda: A Case of Chancen International Rwanda
Jeannette Umurerwa and Tarus Thomas
University of Kigali
E-mail : umurerwajea@gmail.com
Abstract: This study assessed the Effect of Financial Management Practices on Loan Performance in the Education Sector at Chancen International Rwanda. The study was guided by the objective of assessing the effect of investment management on loan performance at Chancen International Rwanda. An explanatory research design with a cross-sectional approach was adopted. The study targeted student beneficiaries, administrative staff, and finance officers involved in the educational financing programme. Data were collected using structured questionnaires, interviews, and documentary review. Of the 184 questionnaires distributed to student beneficiaries, 144 were successfully completed and returned, representing a response rate of 78.3%. Quantitative data were analyzed using descriptive and inferential statistics, while qualitative data were analyzed thematically. Pearson correlation analysis was used to examine the relationship between investment management and loan performance. The model summary showed a strong positive relationship, with R = 0.793, while R Square of 0.629 indicated that investment management explained 62.9% of the variation in loan performance. The findings indicated that effective investment planning, allocation, monitoring, and utilization of financial resources contributed to improved loan performance. The qualitative findings further showed that prudent investment decisions supported loan administration, timely disbursement,repayment monitoring, and recovery. The study concluded that investment management was an important factor in improving loan performance at Chancen International Rwanda. The study recommended strengthening investment planning, improving allocation and monitoring of financial resources, and regularly reviewing investment priorities to support sustainable educational financing.
