Abstract:
The study aimed at examining the effect of Covid-19 pandemic on loan repayment on banking sector in Tanzania. Specifically, to determine the effects of the COVID-19 pandemic on the implementation of loan repayment conditions, to evaluate the loan repayment risks to banks during COVID-19 pandemic the study also examine the challenges experienced by banks client during COVID-19 pandemic. The study was conducted in Sumbawanga Region. It employed a cross-sectional simple random sampling and purposive samplings were employed to get the respondents of the study. A structured questionnaire was used to collect quantitative data from 99 (CRDB Staff and Customers). The data collected were processed and analyzed by using Statistical Package for Social Sciences (SPSS) Software. Generally, the findings of this study indicated that, the loan repayment status was very low, and COVID-19 pandemic played in negative role on the implementation of loan repayment conditions at CRDB Bank Plc. In Sumbawanga Municipal. Moreover, Results as reported by this study indicated that, the loan repayment risk was very high, and COVID-19 pandemic increased the loan repayment risk at CRDB Bank Plc. in Sumbawanga Municipal. Lastly, results as reported by this study indicated that, COVID-19 pandemic affected business operations at high extent whereby a majority (85.7%) had encountered challenges in loan repayment during COVID-19 pandemic at CRDB Bank Plc. in Sumbawanga Municipal. The challenges were the level business activities declined, business losses, cash-flows declined, operations shut-down and debt servicing were very expensive during COVID-19,The government and other stakeholders in banking sector should allocate sufficient funds and grants in order to address the challenges in loan repayment during COVID-19 pandemic at CRDB Bank Sumbawanga Municipal such as decline of the level business activities declined, business losses, cash-flows declined, operations shut-down and debt servicing were very expensive during COVID-19.
