This study was done to evaluate the rural SACCOS’ variables that influence the loans default risks in 37
SACCOS from Dodoma, Morogoro and Kilimanjaro regions in Tanzania between February and May 2013. The
study used purposive sampling where the primary and secondary data were collected by using the structured
questionnaire and SACCOS’ financial reports. The multivariate regression model was used to examine the
influence of SACCOS’ variables on loans default risks measured by Non Performing Loans (NPL). The results
from the multivariate regression model revealed that savings and deposits reduce the rural SACCOS loans
default risks while the total assets, education of the manager and the number of borrowers increases the loans
default risks. However, variables of age of the SACCOS, age of chairperson of the board, manager, chairperson
loans committee and their education didn’t influence the loans default risks for the rural SACCOS. This study
recommend that rural SACCOS should sensitize their members to deposit and save more, loans limit criteria and
geographical distance should be considered before issuing loans, SACCOS’ management should repay their
overdue loans, avoid embezzlement of funds and adhere to their regulations. Furthermore, the advanced training
of credits risks management should be conducted, crop and livestock insurance cover for loans should be
introduced and the government should keep on regulating and supervising the rural SACCOS in Tanzania.