ACKNOWLEDGEMENT

Firstly, I would like to thanks God for giving me the courage, belief and power that I can do
the best. But also, I would also like to express my sincere thanks to my family Mr./Mrs.
zakayo for the support they gave me financially, academically, mentally and socially during
the whole period of my practical field.

Secondly, I would like to thank the management of Uhuma financial service in Dodoma
branch Derick makundi (Branch manager), Ezekiel Lazaro, Judith juma and others for giving
me the opportunity to conduct my field training in their organization for all the time I
conducted my practical training since 17th July up to 30th September 2023. In addition, I
would like to express my sincere appreciation to the Institute of Finance Management and
special thanks to Dr. Basesa for giving me a visit when I was doing my field training and
giving me advice on how I have to accomplish report writing after finishing my field training.

Lastly, I would like to give my appreciation to my friends Daniel Mahenge and Neema
Dunkeni as a trainee for their support and cooperation towards accomplishing organizational
goals at right time with integrity.

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 LIST OF ABBREVIATIONS
ATM Automatic teller machine

BBM Business Banking Manager

BM Branch Manager

BOT Bank of Tanzania

CRDB Corporate Rural Development Bank

FAO Fast Account Opening

KYC Know Your Customer

MAD Manager Administration

MCS Manager Customer Service

SWIFT Social World Interbank Fund Transfer

TISS Tanzania Interbank Settlement System

UFC uhuma financial service

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 EXCUTIVE SUMMARY
The practical training session is the session in which students gets to share what they have
studied in Universities and whatever they know about the organization that has accepted them
to conduct their practical training. So practical training helps students conduct their studies
practically and make them understand things that they either once studied in a theoretical
manner, easily in a practical manner as they get to do them in a routine and be part of it,
students increase their knowledge by learning from the experienced staffs and experts of the
allocated organization. The practical training was conducted at Uhuma microfinance Dodoma
branch with effect from 17th July to 30th September the aim of the practical training was to
enhance the theory knowledge learn in the class with actual knowledge applicable in the
industry.

The field practical report divided in three chapters, chapter one explains about background of
the organization, objective of field training, organization structure of uhuma microfinance.
Chapter two is all about work done and lesson learnt during the field practical and problem
faced during the practical at uhuma microfinance in Dodoma Brach and the lastly chapter is
chapter three that contain conclusion and recommendation of field practical at uhuma
microfinance.

During field practice the trainee met with some difficult like financial problem but also on the
work place there was a shortage of office places where they were forced to stay in single and
small office more than three staffs. From the observation there was small difference between
theory and practice as most of the things were done systematic hence no difficult in
interpreting the knowledge. Through this training the trainee career has been improved and be
competent in the field undertaken during the field. The trainee recommends that both Uhuma
microfinance and IFM to provide adequate cooperation so that they can be motivated to work
efficiently for the bank and the Institute should provide support on securing those offices for
field practical training.

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 TABLE OF CONTENT

ACKNOWLEDGEMENT..........................................................................................................i

LIST OF ABBREVIATIONS....................................................................................................ii

EXCUTIVE SUMMARY.........................................................................................................iii

CHAPTER ONE........................................................................................................................1

INTRODUCTION......................................................................................................................1

1.1 Introduction......................................................................................................................1
1.2 Purpose or objective of field practical..............................................................................1
1.3 Overview of the Field Work Placement...........................................................................1
1.3.1 Background of Uhuma Financial Service..................................................................1
1.3.2 Functions of Uhuma financial service (microfinance)..............................................2
1.3.3 Organization structure of Uhuma microfinance........................................................2
1.4 Review of the Industry the uhuma microfinance works within.......................................3
CHAPTER TWO.......................................................................................................................4

WORKDONE AND LESSON LEARNT..................................................................................4

2.1 Introduction......................................................................................................................4
2.2. Description of tasks and duties performed......................................................................4
2.2.1 Customer care............................................................................................................4
2.2.2 Calculation of interest and principle of the clients....................................................4
2.2.3 Filling of returns for clients on the system................................................................4
2.2.4 To dispatch the customer in the excel system............................................................5
2.2.5 Printing, photocopying and scanning.........................................................................5
2.2.6 Preparation of income statement................................................................................5
2.2.7 Cheque Book Reconciliation.....................................................................................5
2.2.8 Insurance Policy Review...........................................................................................6
2.2.9 Receiving and Processing customers Cheques..........................................................6
2.3 Summary of work done and lesson learnt........................................................................7
2.4 Challenges faced during the field practical......................................................................7
2.4.1 Access to system........................................................................................................7
2.4.2 Network breakdown...................................................................................................7
2.4.3 Overtime working......................................................................................................7

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CHAPTER THREE....................................................................................................................9

CONCLUSION AND RECOMMENDATION.........................................................................9

3.1 Introduction......................................................................................................................9
3.2 Conclusion........................................................................................................................9
3.3 Recommendation..............................................................................................................9
3.3.1 Recommendations to Uhuma microfinance...............................................................9
3.3.2 Recommendations to the Institute of Finance Management (IFM).........................10
REFFERENCE.........................................................................................................................11

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 CHAPTER ONE

INTRODUCTION

1.1 Introduction

This chapter convey project purpose of field practical training, background of uhuma
microfinance, functions of uhuma microfinance, and also organization structure of uhuma
microfinance.

1.2 Purpose or objective of field practical

The objective for undertaking field practical is to enhance the theory learnt into class with
actual knowledge applicable in the market and use the difference as a means of advancing
their career and become a competent professional. So practical training helps students
conduct their studies practically and make them understand things that they either once
studied in a theoretical manner, easily in a practical manner as they get to do them in a
routine and be part of it, students increase their knowledge by learning from the experienced
staffs and experts of the allocated organization.

1.3 Overview of the Field Work Placement

The field practical training was conducted at Uhuma microfinance. at Dodoma branch located
for the period of 8 weeks into different department where at the beginning was held at
customer care and there after moved to finance and loans department in all department the
trainee acquired different knowledge which assisted him to improve his knowledge.

1.3.1 Background of Uhuma Financial Service

Uhuma financial service (microfinance) was stabled in June 2021 in Dodoma under the The
Microfinance Act No. 10 of 2018 (“The Microfinance Act”) which requires all microfinance
service providers to obtain license to operate as such from the Bank of Tanzania (“BOT”) or
any other regulatory body delegated by the BOT to issue such license.Uhuma microfinance
has open three branches in Tanzania which are in Mwanza, Mbeya and Dodoma(main Brach)
and also is among of top microfinance which perform roles of Micro finance institution
which are to provide small loans to the low-income earners, creation of employment
opportunities, capacity building to borrowers by offering different skills such as use of loans,
entrepreneurship and managerial skills. Poverty alleviation is a global issue which lies on the
concept of upgrading the position of developing countries in the world, focusing to Tanzania.
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1.3.1.1 Mission
To provide quality and innovative financial and nonfinancial services that empowers rural
banks and productive poor to excellence

1.3.1.2 Vision
To be a leading financial institution who provides excellent services to poor families in order
to create benefits for clients, shareholders and society.

1.3.2 Functions of Uhuma financial service (microfinance)

Uhuma microfinance focus on offering credit in the form of small working capital loans,
sometimes called microloans or microcredit, also provide insurance and money transfers.

1.3.3 Organization structure of Uhuma microfinance

The figure below shows the organization structure of the uhuma microfinance which gives
guideline to the staff in their operation also it is used as the reference for distribution of duties
and responsibilities to the staff according to their positions.

HEAD OFFICE

BRANCH MANAGER

CASH LOANS ACCOUNTING

REGULAR LOANS MICROFINANCE

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1.4 Review of the Industry the uhuma microfinance works within

Uhuma microfinance as the commercial institution with the role of offering loans to
individual, small and micro enterprises and government enterprises falls under regulations of
Bank of Tanzania with the power to give license, revocate license, reject license, and approve
merger and acquisition in the country, and the microfinance falls under ministry of finance,
planning and development that work in hands with Bank of Tanzania to regulate financial
institutions in the country.

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 CHAPTER TWO
WORKDONE AND LESSON LEARNT
2.1 Introduction

This chapter convey description of task and duties performed in Uhuma microfinance and
also problem faced during the field practical.

2.2. Description of tasks and duties performed

2.2.1 Customer care

Here I was instructing customers about loans that are provided by Uhuma Financial Service.
There are various types of loans that are provided by Uhuma Financial Service such as house
loans, SACCOS Loans, Individual Business Loans.

Lesson learnt; I have learned how to communicate with different customers and this is
because there is some customer which do not have knowledge about loans so I always advice
how to make you loan to be benefited.

2.2.2 Calculation of interest and principle of the clients

I have calculated interest according to one to three-month installment. Example if a client has
taken loan of 200,000 per month. You take 200,000*20%.the interest will be equal to
40,000.so the client is required to pay 240,000 and the total principle and interest rate.

Lesson learnt; I have learned how to calculate interest of monthly installment, shall be
computed as (Principal Amount*Discounted Rate/12). Similarly, interest for the remaining
Completed months shall be computed on the same logic and will be paid. For the remaining
days, it shall be computed as (Principal Amount*Discounted Rate*Number of days/365) and
paid on maturity.

2.2.3 Filling of returns for clients on the system

I had to collect the return of the daily cash that customers have and record it in the system of
loans. Periodic review of loan in system it helps to provide on assessment of the overall
quality of loan portfolio.

4
Lesson learnt; I have learnt that when performing periodic review of loan in system it helps
to provide on assessment of the overall quality of loan portfolio. Specifically, a loan review
assesses individual loans including repayment risk.

2.2.4 To dispatch the customer in the excel system

Record in order to save the different documents of the customers that can be registered so that
can be used for future to be easy to discover and solving the different problems for example
there are some of customer which are over loans means they are not fill their loans.

Lesson learnt; I learned different formula which are used to arrange customers detail in
excel.

2.2.5 Printing, photocopying and scanning

Printing, photocopying and scanning where also the part of duties performed when I was at
the organization, where printing and photocopying the customer form was done and also
scanning drawing map made by surveyor and customer ID photo. They were no problem
experience when the task was done.

Lesson learnt: I learned that customer’s documents should be scanned and photocopied since
They will be attached while recording manually in the books of uhuma financial service.

2.2.6 Preparation of income statement

An income statement is a financial statement that shows you the company's income and
expenditures. It also shows whether a company is making profit or loss for a given period.
During my field practical also I perform the task of preparing income statement of uhuma
financial services.

Lesson learnt; I have learned how to prepare income statement through excel with the use of
different formula in excel and also all-important element which should be consisted when
preparing income statement. And also, income statement helps to show the effectiveness of
the strategies that the business set at the beginning of financial period but sometimes income
may show depreciation expenses which may not reflect true cost.

2.2.7 Cheque Book Reconciliation

For the security purpose and record keeping, cheque book that have been issued to customers
are recorded in the register book after setting of ranges. Also, cheque books that have been
received from head office are recorded in the register after verification of account numbers

5
and name of the customer (company or individual). Also, this goes along with recording
information of customers who have requested new cheque books to avoid duplication of
orders such as the account name, account number.

Lesson learnt; I have learned from this task is that through customer requesting new cheque
book then its registered for charging the fees and once issued to the customer also is recorded
in the registrar to avoid the inconveniences for the cheque that will be drawn by the account
holder in order to affect payment during confirmation of cheque for payments.

2.2.8 Insurance Policy Review

The Uhuma financial service offer an insurance contract on property and pecuniary where it
gives s policy as an agent of UAP insurance company on this process we issued a payment
bill for new policy and we visited a customer and make inspection on the current situation of
the property according to guideline like looking on distance covered by vehicle.

Lesson Learnt; On the basis of the guideline for issuing insurance policy bank has to
determine the current condition of the property before offering a new policy and that
information should be updated in the policy so as to avoid misunderstanding when the loss
occur.

2.2.9 Receiving and Processing customers Cheques

This is for the customer with current accounts which are operating through Cheque therefore
dealing with cheque which are issued by companies and customer of NBC, NMB, CRDB,
Amana bank etc. with current accounts requesting their clients to be paid. so the cheque upon
presentation by the customer I had to receive it and confirm it from the bank the company
had the accounts , I had to check for the validity of the cheque by close checking the
following if are in a right way, drawer’s information, payee details, amount in words as well
as amount in figure, signature of the drawer, date at which the cheque is issued if the
mentioned condition is not fulfilled then the cheque is dishonored, when the cheque is
received by the bank then pass entries and record ready for clearing and posting.

Lesson learnt; Lesson learned from this task is that before paying the customer I had to
confirm from the bank where the drawer had an account then if the cheque is proper
presented the bank will pay the customer but if the drawer had an account at our bank then if
proper presented then payment is honored.

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2.3 Summary of work done and lesson learnt

A number of activities that was performed in loans, finance and revenue departments was in
line with what we have been learned in class. For example, reconciliation of customer
amount, Calculation of interest and principle of the clients, Preparation of income statement,
Receiving and Processing customers Cheques, Printing, photocopying and scanning, Printing,
photocopying and scanning and To dispatch the customer in the excel system Most activities
done involving recording in the computer system was done in Microsoft Excel and Microsoft
word which is relevant of what I have learnt in class, but other activities was manually not
using computer.

2.4 Challenges faced during the field practical

During my field practical training at uhuma financial service, I have faced some problems,
which have been a challenge in my practical training; some of them are as follows:

2.4.1 Access to system

I had no computer passwords and software ID as other staffs since, I was not an employee of
uhuma financial service. System access officially are given only to contracted employees for
security purpose, this was the great challenge because when I was performing my assigned
duties some required me to access the system which actually needed the user name and
password to login this was a big challenge to me since it was not easily for me to access the
system .This makes me use long time in performing the same duty waiting for someone
people who can login the system.

2.4.2 Network breakdown

Most of work which performed by uhuma financial service require a good network system,
for the period of my practical training at uhuma financial service network breakdown was a
big challenge for all staffs to execute 11 their duties since most of activities are performed
through computer which are connected through network. Now when this happen nothing can
happen through the use of system this was a challenge.

2.4.3 Overtime working

At Uhuma financial service Dodoma branch there is a problem of insufficient man power that
is less number of employees this is a challenge I experienced during my practical training

7
since makes us to more duties beyond the normal working hours this forced us to leave the
office some time at 6:00pm while the normal working hours is up to 4:00pm Despite of the
challenges faced by the trainee in executing their duties but they have managed to perform
their task in a best way and achieve the expected level of satisfaction required by the
customer.

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 CHAPTER THREE
CONCLUSION AND RECOMMENDATION
3.1 Introduction

This chapter covers the conclusions of the field report and the recommendations associated
with problem I have faced during the field practical placement especially to the institute of
finance management and to Uhuma microfinance management.

3.2 Conclusion

Microfinance largely facilitates the poor’s access to institutional credit and has both
economic and noneconomic impacts including poverty alleviation, women empowerment,
and promotion of gender equality. However, microfinance is not a panacea for poverty
alleviation and credit remains inaccessible to certain sectors of society especially the poorest
of the poor. To benefit greater segments of society, microfinance should be part of a broader
strategy that combines it with other social protection programs.

3.3 Recommendation

During the field work training there was some challenges that I have faced and the
organizational was facing here are some of the recommendations on how the organization
and the institute can fill the gap for proper field work attachment and for the proper handling
organization objective and task assigned.

3.3.1 Recommendations to Uhuma microfinance

These are the advice given to Uhuma microfinance so that during field practical training the
student can have conducive environment to learn and provide full cooperation towards
achieving the organizational objectives as they will be able to execute their duties efficiently
and timely.

Availability and stability of network; The network breakdown also was the challenges to
the organization as whole this can be minimized so I suggest that each branch to have an
operator/ programmer rather than waiting an expert from head office this can increase
performance of the bank.

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Rotation of students to different departments; The students should rotate to different
departments rather than staying on one or few departments and finishing out training being
unaware of activities done in other departments like credit departments.

3.3.2 Recommendations to the Institute of Finance Management (IFM)

The student also provides some tips to institution so as the can have easy access to the
institution where the field practical is conducted so that they can be confident with their
operation towards enhancing their career and become a good professional in their respective
field.

Arrange different periods for field attachment; The period students have to attend field
practical training it’s the period at which most of the other students from other universities
attend the training so the organization is forced to accommodate many students as a results
student end up in few departments I suggest the period to attend training maybe either after
the end of first semester.

Specify the organizations students can perform field training; The institute can specify
that students studying banking and finance can perform field training to specific organization
that can increase knowledge to their career rather than doing field training at any
organizations.

10
 REFFERENCE
Clerkson B. M., 1995. Astakeholder framework for anaysing corporate social responsilty.

Bill Price & David Jaffe, 2007. The Best Service is no service. US: JOSSEY-BASS.

Griffin, J., 20003. Customer loyalty. UK: JOSSEY-BASS.

IFM, 2023. logbook. Dar es salaam: s.n.

Kothari, C. R., 2006. Research methodology. indial: new age international publication.

Kesanta, J., & Andre, B. (2015).

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