CHAPTER ONE

1.1 INTRODUCTION
BACKGROUND TO THE INTERNSHIP
The word internship could be defined in different ways by different people but all
of which have the same meaning which is a system on the job training for white
collar and professional careers i.e. internship is a period where students go through
an industrial training in which they are given the opportunity to gain practical
knowledge of what they have been taught in school. I did my internship in UNICS
PLC.
Unity Co-operative Society (UNICS) PLC is a category two microfinance
institution, founded in January 2000 as a category one micro finance institution
with a single branch in downtown Yaoundé. This institution operates the same as a
bank apart from the fact that it has a limited amount of loan it can offer to the
general public.
On the first day at work, The intern was introduced to the following persons;
The Branch Manager: Mr Shu Hasper
The Customer service officer: Mme Antah Macrina
The Teller: Mme Batey Bessem
The Operations Officer: Mr Wirba Emmanuel
These workers are present workers who run the day to day activities of UNICS
PLC Buea branch as at present date.
1.2.1 AIMS AND OBJECTIVE OF THE INTERNSHIP:
The aims and objectives of an internship can vary depending on the organization
and the specific internship program. However, here are some common aims and
objectives of internships:

1
  To gain working experience
 To fulfil an important requirement of the HND syllabus
 To gain entrepreneurial skills
 To blend theory and practice
 To get familiar with the nature of the job market

1.2.2 Objectives of the internship

 To apply the skills and knowledge gain at the institution in the software
department
 To create familiarity with computer interfaces
 To be able to formulate recommendation from identified problem areas
which will be probably go a long way to help the organization

Characteristics of internship
A good and effective internship has a good number of characteristics which are
provided below as follows;
 It contributes to the students personal and professional development through
challenging work assignments. It must be completed before a student graduates
from the University of Buea
 Planned and controlled through consultation with the department or
University so as to fit in undergraduate experience.
 It involves a supervision component that is mentoring and educational
component. This supervision is carried out by the organization.
 It includes carrier related experience that compliment what is learnt in the
classroom, meaning matching the theory to practical.
 A student will have a reflection and evaluation process at the conclusion of
the internship.

2
 Internship is more successful when the student, university and employer all
share the responsibility in making it a valuable experience

1.2.3 Importance of Internship

To The Students;
 It makes students become more mature and confident of their capabilities
and develop personal skills.
 Internships provide a link between academic learning and professional
employment.
 It will facilitate your completion from your school of studies since it is a
course required to graduate.
 It strengthens personal character: not only do internship help develop your
personality, but they also encourage character growth of students. Many employers
even value personal qualities over professional qualities. Characters like integrity,
commitment and self-motivation are several traits that are learnt through an
internship.
To The Organization;
 Internship programs can be used to access a student for potential full
employment.
 This acts as a recruitment program for the hosting organization.
 With the availability of interns, they facilitate work and reduce the work
pressure from organizational staffs

To The University;

3
  Internship strengthens ties with the academic environment and the economic
society.
 It helps with retention and a quality graduate from the university.
 Enables the university to know whether the student master what has been
taught in the classroom.
 Internship equally makes it possible for the university to be able to access
the strength and weaknesses of their students.

1.2.4 Limitations of the internship

There are always some limiting factors to everything, internship is not different as
it also has its own pull down factors despite the numerous advantages. Some of the
limitations will be seen below as follows:

 Unrelated jobs might be done by the intern.

 Language barrier becomes a limiting factor when the intern is unable to
express him or herself in the working language.
 Lack of finance by the intern could hinder him or her to be hundred percent
professional since it is not a right to be paid when on internship.
 There are very few finance institutions and industries to carry out internship.
Thus students face a lot of difficulties to get placement.
1.3 OPERATIONAL DEFINITION OF TERMS.

 Banking: An industry that hands cash, credit and other financial transactions
for individual consumers and business alike
1.3.2 LIST OF ABBREVIATIONS.
 CSO: Customer service officer
 ATM: Automated teller machine
 OPS: Operations officer
 UNICS: Unity co-operative society

4
 BOD: Board of directors
 PLC: Public limited company

5
 CHAPTER TWO

2.1 HISTORICAL BACKGROUND OF UNICS PLC

UNICS PLC is a category two MFI, founded on the 15 th January 2000 as a

category one MFI in downtown Yaoundé as a Public limited company (Judicial
Status) with a share capital less than ten (10) million franc CFA and thirty (30)
shareholders. The intern was authorize to operate as a category two MFI in January
2018 with a share capital of 1.6 billion franc CFA, 64,000 shares which is divided
between more than 254 individuals of various professional backgrounds residing in
Cameroon and aboard, supervised by a 9-manned Board of Directors from diverse
professions and has about 13branches and 4 sales points in five regions and eight
towns of the country with about 70,000 customers, presented over the national
territories.

2.2 AIMS AND OBJECTIVES OF UNICS PLC

Unity Co-operative society as a micro-finance has the following objectives:
 Help members deviate from poverty by giving them productive loans.
 Help foster economic and social interest of its members by giving them
different kinds of loans to foster their wellbeing. Such as long term and
school fees loans.
 Make sure that member that members are liable and trust worthy
especially towards loans. Given that is to say, the loan manager applies
the 5Cs for granting loan.
 Marginalize profit. That is, not at a loss but in a balance.
 Having social cooperate responsibility to train internship students to help
them blend their theoretical knowledge with practical.
 Encourage regular savings and wise borrowing as well as pay a fair rate
of interest on those savings.

6
2.3 THE ORGANIZATION STRUCTURE OF UNICS PLC

UNICS PLC just like any other organization follow rules, regulations and
procedures in performing its activities as defined by laws thereby giving rise for
the need to define its procedures regarding those concerned in executing these
tasks of UNICS PLC through hierarchies involved. it is headed by a general
manager by name

 THE BRANCH MANAGER

The branch manager is the head of the branch; he oversees all the
activities carried out in the branch and reports these activities to the head
office.
Main duties and responsibilities of the manager
 He is responsible for the overall success of the branch in terms of business
development and operational efficiency. That is, he identifies new
businesses and look at the way workers do their jobs.

 He is in charge of coordinating the activities of the branch in compliance

with the company’s applicable instruments (policy manuals, management
directives, the budget, internal rules and regulations.

 He identifies profitable business opportunities and develop appropriate sales

and marketing actions to close them

 He effectively delegates powers to close collaborators to facilitate job

accomplishment.

 He reports on a routine (monthly and in case of any event) basis to hierarchy

and updating collaborators in regular branch meetings on all business
exigencies and developments. That is, report the general situation of the
staff, productions and the branch as a whole.

 Counter analyse all credit files (line of credit, business loans/overdrafts and
salary files) and supervise all recovery actions at the branch.
7
 He supervises all transactions at the level of the branch.

 He applies company’s rigorous risk management policy with a steady focus

on transparency and efficiency.

 He maintains the relationship with other banks or institutions

 He is responsible to bring out the best of branch’s personnel by providing

training, coaching and motivation.

 He is in charge of branch liquidity planning and monitoring to achieve a safe

and high efficient liquidity management.

 He identifies, resolve and communicate gaps/opportunities in our delivery of

product solutions to clients.

 He is in charge of local financial institution relationship maintenance

including relationships with commercial banks, insurance companies and
governmental authorities.

 CUSTOMER SERVICE OFFICE (CSO)

The person in charge of this office is called the customer service officer.
This is the front office of the institution. This is where customers do their
enquiries. Here, customers are welcomed and directed to the various offices
where their worries will be resolved. Also this is the first office interns pass
through when they begin their internship to understand the different services
and products of UNICS PLC and to know how to fill all the forms.

Functions and Duties of the CSO

 The CSO receives, orientates and directs customers to the appropriate
offices.
 The CSO Opens accounts, and also updates customer’s passbook.
 Sells ATM cards, cheques and passbook to customers.
 Help customers fill their forms if they cannot do so.
 The CSO educates customers on the products and services of UNICS.

8
  The CSO receives customers queries and gives them the necessary advice
they need.

 The Teller
She is in charge of processing all the transaction that is either cash in or cash
out. That is, she receives cash from customers who want to deposit and gives cash
to those who want to withdraw. She signs for any cash transactions be it deposit or
withdrawal.
Functions and duties of the teller
 She accepts cash, cheques, deposit and withdrawal slips, and ensures all the
information is correct.

 She processes cash withdrawal and deposits in the system.

 The Teller receives and counts money at every beginning of a shift.

 The Teller records all transactions promptly and accurately.

 The Teller also receives, verifies and pays utility bills (electricity bills) and
loan payment.

 Ensure compliance with all internal control and establishes policies and
procedures.

 She attempts to resolve customer worries and problems regarding their

accounts.

 The Teller also balances her till at the end of each day.

 She answers enquires regarding checking and saving accounts and other
related bank products.

 She makes a book keeping.

 She sends money to the vault when money in the till is more than five(5)
million FCFA.

9
  She accepts money transfer (speedy cash) from customers.

 OPERATIONS OFFICER (OPS)

The OPS has the responsibility to record, analyse, summarize and report on the
financial data of UNICS Plc as they occur. He records transactions in the books of
primary entry (source documents) and ensures all transactions that occurred have
been recorded.
Functions and duties of the operations officer
This is the back office of the institution, that is, he has no direct contact with
customers since he deals with customer’s accounts.
 Reporting

 Performance indicators, income and expenditure, customer base,

recovery, credit facilities (reference with budgeted amount).

 Budget analysis, actual and budgeted amount compelled thus bringing

out variances with possible explanations.

 Cash count certificate, verification and confirmation of total forms in the

various tills.

 Term and time deposits report situation of time and term deposits of the
branch.

 Inter-branch reconciliation, reconciling transactions between branches of

the network.

 Proofing of third party accounts, reconciling class four accounts (TVA

verification).

 Fixed asset inventory situation, of fixed assets for the branch with their
state custodian and location.

 Stock management sheet, situation of stock of operational document, ink

and office supplies for the branch.

10
  Word report, summary of all the reports explaining the reasons for the
various variances from realization and reasons for good or bad
performance.

2.4PRODUCTS AND SERIVICES OF UNICS PLC

2.4.1 Products of UNICS PLC

UNICS PLC has a good number of products which it offers. These products
include; savings, deposit account, minors account, (group account, loans
account and salary account), ATM Saphir GIMAC card, line of credit.. These
are examined below.

Loans account

UNICS operates the loan account as overdrafts and contract financing. A loan is
backed by a surety or a collateral security which is not moveable. A loan is granted
up to three times the amount in the member's savings, only to members who have
been at least three months old and depending on the regularity of the members
saving habit coupled with other requirements. Members are granted loans during
the beginning of the school year and at very low interest rates and the above
processes are not necessarily meet up.

Deposits account:

It functions like the current account in the commercial banks. Withdrawal from
this account is done at all times without payment of charges and no profit is paid to
this account.

Savings account:

11
This account at UNICS attracts dividends at the end of the year and also serves as a
primary basis to obtain loans. Here money can be kept and blocked for a period of
time say 1 year and this money can earn some interests on it.

Group account:

This account is operated by groups, associations and other establishments for their
financial transactions. Here, groups or associations open their accounts with CCC
PLC to save their money and to help them carry out their financial transactions.
Groups are offered the services of saving their money and three members of that
group are registered in the bank for any withdrawals. In this account, any member
from the group can deposit money into that account but only the three whose
names are there can make withdrawals.

Salary accounts:

The bank helps members to pay their salaries like military men, CDC workers,
company guards pensioners, primary teachers, civil servants are made payment
through bank.

2.4.2 Services of UNICS PLC

UNICS PLC offers a good number of services to its members and non-members.
The following are the service provided by UNICS PLC.
 Western union
 Orange money
 Mobile money
 Payment of salaries
 Overdraft facilities

12
  Contract financing
 They also have a USSD code and mobile app which enables customers to
carry out transactions from the comfort of their home.
 The saphir GIMAC card also gives customers the possibility to use their
ATM cards on any machine in the six CEMAC region.

CHAPTER THREE

ACTIVITIES CARRRIED OUT BY THE INTERN

 Activities Carried Out by the Intern

During my training period at UNICS PLC, the intern was trained in all the
departments of the institution. That is, the loan, accounting and cash departments.
The following paragraph gives a detail analysis of the activities I performed in
UNICS PLC.

Note: Before any transaction is carried out using the system, the accounting day as
well as cash needs to be open. It is also important to note here that; the date has to
be adjusted to suit the current day.

 The loan/credit department

The intern worked with the loan/credit department. This department is headed by
the loan manager who manages the loan portfolio. A loan portfolio consists of the
name of the borrower, date of borrowing, account number of the borrower, loan
amount, number of instalments to be made, interest rate and the delinquent days.
The loan department deals with lending out money to members for several reasons
as the members present. It is the greatest profit making product of the bank. There
are two types of loans that is the short term loan and the long term loan. (See
appendix 1 and 2).

The procedures for granting a loan are as follows;

13
  The customer goes to the customer service to make his intention known and
the type of loan he wants; he is now given a loan file to fill.

 The customer provides his personal information and a shortee.

 The member in need of a loan writes a handwritten application carrying the

amount, the reason, securities to be presented and his source of finance

 A photocopy of his ID card or other valid identification papers.

The 5Cs are taken into consideration before a loan can be granted to a member.
The 5Cs are;

Capital: Here, the loan officer looks at the person's investment that is what the
person has in his or her account before coming for a loan. This is mostly
considered for public members and those doing business. Here loan is given base
on your capital and your ability to pay. Hence having a huge capital increases your
ability to be granted a huge sum of loan and also your collateral security needed.

Capacity: Here, the loan officer looks at all the people's sources of income.

Credit history: The loan officer finds out if the person has ever taken a loan.

Character: Here, the loan officer looks at the person's behavior.

Collateral: This is the last point where the loan officer can only come in if the
person is unable to pay his loan.

The above requirements and some personal findings made by the loan officer
which are taken into consideration

14
 The loan manager appraises the loan by doing the following

Before a loan can be granted to a member, some findings are to be done. Such
findings are referred to as loan analysis and appraisals. All of these procedures are
to avoid fraud and to make sure the money going out will come back on time
accompanied by interests.

He cross checks the periodic individual ledger of the member in order to know the
member's situation, as his regularity and credibility to the bank, he goes through
his account statement. He then goes out to his business place, home to find out
more about him, check his collaterals and credibility.

After his findings, he holds a meeting with the other staff (staff credit committee)
to evaluate the members' character and other situation. The customer’s salary is
also evaluated in respect to the amount of loan demanded. Then the file is then sent
to the administrative headquarters for further deliberations and approval.

 The accounting department

During my internship, I also worked with the accounting department. There are a
good number of activities I performed in this department and they are examined
below.

 Opening of the accounting day

This is a very important activity to perform each day before any other activity can
be carried out. For example, it is only when the accounting day is opened that the
cash department can cash in and cash out. thus is because cash can only be open in
the system. The steps to open the accounting day are as follows;

 Lunch the Alpha software

15
  On the menu bar, click on file

 Select batch treatment from the list of items

 Click on accounting day open and confirm that the date showing in the
system is the current date. This is because Alpha does not recognize some
days like Saturdays and Sundays

 Click on save after corrections have been made.

 Closing the accounting day

At the end of the day before work closes, the accounting day is closed. the steps to
close the accounting day are as follows;

 Click on file on the menu bar of the already lunched Alpha

 Click on batch treatment

 Select saving data and follow instructions in order to back up the data

 Click on file, then batch treatment and select accounting day close.

Note: The business day ends with the closing of the entire system in the
manager’s office which has the main saver.

 Bank reconciliation

Bank reconciliation is a process where the bank monitors its transactions/ activities
by matching amounts in the banks statement with that in its cash book. This is a
sensible and ongoing activity that enables the bank to know it liquidity position at
the level of the bank which operates it account. It is usually done on a monthly

16
basis to be able to track down unidentified and unauthorized transactions carried
out in order to prevent fraud and hacking assets with the bank, and to make sure
that the activities of the bank correspond with that of its mother bank

To carry out this exercise, the following documents are needed; the bank statement
for the month to be reconciled, the cash book printout and the reconciliation
statement for the previous month. The following steps are followed;

 The bank statement is collected from the bank and scrutinized for all
operations which have not been recorded in the cash book. They include
bank interest, charges, commissions, which are determined by the bank only.

 The manual process of matching up the entries on the bank statement and
those in the cashbook is carried out. Each amount in the two books is
reconciled by matching up the amounts with the same values found on the
debit side of the bank statement to those on the credit side of the cash book.
The corresponding amount on each side of the two books has the respective
cheque numbers.

 The unmatched figures which could be made up of both payments and

receipts in both books are then used to prepare the bank reconciliation
statement as follows;

 The bank balances at the start of the month.

 Add the payment on the bank statement not found in the

cash book (these are figures on the debit side of the bank
statement)

17
  Less payments in the cash book not found on the bank statement
(these are figures on the credit side of the cash book)
 Add receipts recorded in the cashbook not found on the bank statement
(figures on the debit side of the cashbook)

 Less receipts recorded on the bank statement not found in the cashbook
(figures on the credit side of the bank statement)

 The cashbook closing

Considering the above mentioned procedure and points are respected fully, a copy
of this bank reconciliation statement and cashbook trial balance printout is
produced for which the figures must correspond with those of the bank
reconciliation statement. This copy is presented to the banks body, who study
closely, correct if any mistakes/ omissions and approve it by signing

 The cash department

The intern working with the cashier, learn how to open cash of the day, closing
cash of the day payment of withdrawals to customers and members and filling of
deposit forms and pay in slips. This is the first department that members come in
contact with when enter the organization. This department is in the front office.
The cash department deals with the deposit and withdrawal of cash from members,
workers, other branches, expenses and the bank as need may arise. This
department is control by the cashier.

To begin the day as a cashier, the accountant opens the office, switch on the
computer, goes to the back office and collects the cash tilt (which is always closed
and kept at the back office at the end of the day), crosschecks it with the manager
(main cashier) and takes the tilt box to her office.
18
Here, the alpha microfinance software is used to process transaction. The manager
then opens the accounting day by going through the following steps.

 The file tab is selected and batch treatment is selected. When the page opens,
she selects open the accounting day, confirm the date and take save. At this
stage, the cashier can also open her day.

 To carry out any transaction, the software is opened by double clicking on

it, on the desktop or going through the start button, and selects the software.
When the software opens, the cashier puts in her password and the software
opens. The following tabs then appear, files, cash in. payments, loans,
reports, management, previous exercise. A tab is selected based on the
transaction to be carried out.

File: this tab is used to connect to the software before any transaction is carried out
Cash in: this tab functions when the cashier receives money. When it is clicked,
we have

 Cash from member (or 13 for shortcut). This is when money is received
from members to be put in their accounts. When this is selected, the
member’s account number is inserted after receiving the money, the
denominations are filled and the amount registered according to where the
member wants the money to be saved (savings, deposits, loan repayments or
shares). Then save is clicked and the receipt printed out.

 Member share deposit;

19
  Other cash in: this is cash from other branches, bank. With this section, the
following is to be filled; cash breakdown, remittent, account number,
purpose for the money and then saved and printed out.

 Reception of funds: money from the back office (main cashier)

Payments: this is used for withdrawals of cash, either by back office, members or
expenses. When clicked, we have the following forms (see appendix 3,4,5,6).

 Cash withdrawal (f4): member cash withdrawal. We input the account name
or number to process the transaction. Here the account from which the
money is to be withdrawn from is selected and the amount.

 Other cash payment: money withdrawn from expenses salaries etc.

 Transfer of funds money sent to the back office or to other branches.

Loans: the cashier actually has nothing to do with this tab, this is used by the loan
officer and the manager.

Report: report on checked here individual ledgers, member's situation and cash
statement are checked here.

Management: this tab is use to open and close the casher's cash.

Previous exercise: this is used when the cashier wants to check on her previous
transactions.

Utilities: this tab is use for calculation and sending or receiving mails from within
the office. That is from one worker to the other.

20
When the cashier is done performing these transactions, two computerized receipts
are printed out. One is given to the member while one is kept in the unions keeping
and future needs. After this is done, the passbook of the member is filled, as well
as the individual ledger kept in the office. In the case of withdrawal for expenses or
salary payment, a manual receipt known as voucher is filled, one given to the
member and the other duplicate kept in the cashiers keeping. While the cash
receipt is filled with the money deposited.

A requisition form

A requisition form is filled when money is taken from the cashier concerning the
bank.
This form is filled and signed by the staff collecting the money and in case of
amount greater than 1000frs, the accountant verifies it and the manager approves
before it is paid out (appendix 7).

 Registration of new members

Membership is opened to every individual residing on the national territory

irrespective of their tribal background or nationality. Membership also extends
groups, institutions and other organizations. To become a member, the following
should be taken to any UNICS PLC office.

On registration, a registration form is filled by the member which carries his

personal information and the names of his beneficiary (ies), signed by him, the
BOD and a witness (appendix 5). Each member after registration is created an
individual ledger (bin card) whereby all transactions carried out by him is stored.
21
Also, he owns a passbook kept by him, where such transactions are registered thus,
the transaction carried out by a member is saved in the computer, the individual
ledger and the passbook.

After filling the form, the account is created in the system by going through the
following steps

 Open the software, click on the management tab.

 Select member’s inscription, select physical member, the page opens then
take number, name and all other personal information including the
telephone number.

 Then select and save.

 Next step is to click on cash in tab and select share member deposit, select
the suspended person’s name and click enter.

 The 84.800frrs is then appointed as required as shown above > The form is
then saved by clicking on save and printed out.

 e account number comes out and the person becomes a full member

 Procedures for closing an account

An account at UNICS PLC is hardly closed since members are discouraged to

close their accounts no matter the situation. But if persistent, it can be closed in the
following cases.

22
  Event of death or permanent mental illness, in case of the dead of a member,
the family comes along with a death certificate to confirm and close the
account. The family is paid everything which in the beneficiaries account,
plus a 100% double insurance for those less than or equals to 55years . In
case of non- respect of laws and regulations enforced. In case of withdrawal
by a written notice which will take about three months.

 In case of a transfer of a member out of southwest region or out of the

country, a member is advised to leave the account dormant but if he/she
insist, it can still be closed down and giving him his savings, deposits if any
as well as all his shares

 By expulsion, if the bank realized some bad behaviors or malpractices which

sabotage the image of the bank, the account is automatically closed with the
knowledge of the member and family members (beneficiaries).

 On closing the account, the member applies and the BOD grants the request
after a period of three months. This application is accompanied by a closure
fee of 5000 FRS. When the closure is granted, in case the union is making a
loss or a profit, the member receives his own part.

3.2 FOCUS AREA: Loans and Delinquent Loans Recovery

After working in all the departments at UNITY CORPERATIVE SOCIETY

(UNICS PLC), the intern shall focus on loan and delinquency recovery. Loan
granting is a very important tool in UNICS PLC. This is because it is one of the
ways in which UNICS makes it profits. Also, delinquent recovery is a means by

23
which UNICS use to recover loans that are written off. That is to say, loans that is
above 360days. As far as loan granting and delinquent loan recovery is concerned,
UNICS has developed strategies in giving out loans which involves the 5Cs. Loan
granting is out depending on the type of loan needed and also the type of collateral
security. Loan is being given to their members at an interest rate of 1% for short
term loans such as school fees loans and 2% for long term loans which above
savings. They are different types of loans that UNICS gives out to it members,
which include: contract, school fees and long term loans. Loan granting also have
procedures that have to be followed before a loan can be granted. The procedures
that have to be followed before a loan can be granted. That is; filling of a loan
form, the loan appraisal strategy depending on the kind of loan needed, and they
are also some loans which are only approved at the level of the administrative
headquarter. Loans approved at this level require tangible and acceptable collateral
security. The different type of loans will be examined as follows.

Contract Loans

These are huge sum of loans that are given mostly to contractors to enable them
carry out their contracts with ease. In this case, the organization receives an
irrevocable letter from the owner of the contract in order to finance the project
after which the money will be paid in their bank for them to remove their expenses
and profit. This kind of loan is given based on the judgmental skill of the loan
officer. That is to say, he must apply the 5Cs of granting loan. The collateral
security is also considered, and the person's account is also checked to ensure his
repayment capacity. This contract loan is approved only at the level of the
administrative headquarter. Before granting, the person is required to fill a loan
form with the help of the loan officer or any staff in the loan cooperation. The kind

24
of collateral security accepted for this kind of loan includes land, car, and other
valuable real assets depending on the amount needed. A surety is also needed when
granting this type of loan. Contract loan is mostly common with public members
who intend to start up a contract and have an account with UNICS PLC.

School fees loans

This is a very important part of loans given by UNICS PLC to it members to

enable them sponsor their children in school. This type of loan is at the level of the
manager and the loan officer. That is to say, the loan is been confirmed by the loan
officer and approved by the manager of the bank. Here, the 5Cs for granting loans
is not applied, collaterals are needed and a surety because it is being given at 1%
interest rate which is been taken upfront. Before the loan officer grant a loan to any
member, he checks the person's saving account, and also that it has a specific
duration of repayment which is short. The requirement of this kind of loan requires
the child's report card and a handwritten application of the person requesting for
the loan. After presenting all this, the loan officer processes your document and
gives you the money. The loan officer makes sure that the person is been followed
up. This is done mainly to meet up with the time of payment stated.

 Delinquent loans recovery

Delinquency is a situation where by if members do not pay their loans as program

in the system, it will lead to a bad situation. It is expected that loans are to be paid
monthly and on time. If a loan is not paid on time, it will start reading delinquent
and if follow up is not taken, it may enter 360 days which implies that it is bad
loan. According to the OHADA law, when a loan reaches 360 days, it is
considered delinquent. Delinquency is a bad situation for any Financial Institution

25
or Micro Finance Cooperation to encounter because it may lead to bankruptcy of
the cooperation.

At UNICS PLC, they are some stages that have been put in place to fight this
delinquency situation which involve the 5Cs for granting loan. They have also

This process of recovery starts by tracing out the person's documents in the system
and calculate the delinquent period. When this is done, the document is forwarded
to the president of head manager for examination and confirmation, then to their
lawyers. At this level, the manager of UNICS plc. The bank can follow up by
means of calls, visits, issuing of reminder letters. Issuing of reminder letters can be
carried out in two ways, the OHADA law on simplified recovery procedures which
gives the go ahead for the issue of 3 recovery letters, the first after 15 days, second
after 30 days of no response then the third after 15 days. After the third letter the
bank then goes ahead to carry out legal closure. The Cameroon law issues 2
recovery letters. Failure to act after these two letters can lead to jail sentence. It can
also give the customer the possibility to be banned from credit activities, this
closure is done at the level of the bank when it goes to the headquarters it is now
known as forceful recovery. the loan officer and the lawyer, goes to the person
destination. If at the end the loan is successfully recovered, it becomes an income
to the bank and at the end of the year after all their expenses have been calculated
and their account balance, the remaining delinquent recovery is being shared
amongst the Board members and other staff. Due to the fact that loan granting is
very important to use at CCC PLC, they have come out with a model known as the
5Cs of granting loan that has to be applied in any loan situation before a loan is
granted. These 5Cs can be examined thus.

The 5Cs for granting loans

26
These are the procedures that are to be taken into consideration before a loan can
be granted. These 5Cs include; collateral security, capital, capacity of repayment,
credit history and character, conditions

Credit history and Characters of persons

Before a loan is been given, they must know the character of the member. This is
important because it helps them know who to be given what amount of loan
demanded.

Capacity of repayment

Here CCC PLC gives loan based on your salary. That means your capacity of
payment. Here the loan officer checks in the system the member's monthly salary
and applied his judging ability to know how much loan to be granted. This is to
avoid the situation of delinquency.

Collateral Security

This is an asset given before a certain amount of loan can be given. The advantage
is that it helps to recovered loans that cannot be paid by the members by selling the
loan to recover the money.

Capital

This is mostly considered for public members and those doing business. Here loan
is given based on your capital and your ability to pay. Hence having a huge capital

27
increases your ability to be granted huge sum off loan and also your collateral
security needed.

Conditions

This is also important aspect to be considered before granting a loan. It is very

important, and it depends on the judging ability of the loan officer.

3.3 COMPARISON BETWEEN THEORY AND PRACTICE

3.3.1 Similarities between Theory and Practical

 Theory (what we study in class) is not completely different from what we

learnt in the field (practical), although we have some few differences but the
practical and theory are almost the same things and they equally have some
similarities.
 According to the accounting principle in the principle of accounting, there
are steps to be followed before loans can be granted. The same thing is being
applied in the field. This involves submitting of different files before a loan can be
granted.

3.3.2 Differences between Theory and Practical

 In class and in the principle of accounting, it is tedious to calculate
loans were as at the field everything has been imputed in the system which
makes work less tedious and less time consuming.
 In class, we have a general knowledge about the different transaction
been carried out in an organization. The same is been applied at the field one
of such is loans. Whereas at the field, the intern learns loan details and

28
 aspects as the different type of loans, and also how to manage a loan which
is a very important aspect in an organization.
 There is also physical contact between the loan officer and the
member in aspects of loan granting whereas in class, in most cases we base
on assumptions. With this the intern sees the clear difference between theory
and practice.
 In school, no physical collateral securities are provided before loans
can be granted. But in the field, there must be collateral securities before
loans are granted.
 Summarily, it was observed that though what is taught in class is not
same with what is happening in the field, but the differences are very slim
that even becomes invisible.

CHAPTER FOUR

EVALUATION OF INTERNSHIP

4.1 THE STRENTH AND WEAKNESSES OF UNICS

 STRENGTHS OF UNICS

By strength, we talk of those characteristics of the institution that gives it an

advantage over its competitors.
 Location: UNICS Buea is well situated (opposite to express exchange and
before ECOBANK coming from UB junction toward malingo junction) that
is, close to its customers and easy to identify.
 Customer relationship: UNICS treats its customers with first class interest
i.e. a well prepared reception (CSO) to welcome them, which gives them the
impression to be at the right place.

29
  Professionalism: The state of professionalism in UNICS is outstanding.
Before you get to work as in any branch of UNICS, you must have gone
through a screening process after which you will be train and prepare for
work. Where some time the institution carryout job rotation and effective
delegation of power to close collaborators by the manager. By job rotation, I
mean in case of an absence another can effectively do his/her job to close the
absence and the manager could delegate power in case of his absence. For
example, during my internship I realized that when the teller went on lift the
CSO did effectively did her job, when the manager was not, the power is
delegated to the OPS and the manager was doing the loan officer job due to
his absence.
 Card loading can be supervised by any branch manager.
 Risk management: UNICS is insured by BENEFICIAL LIFE insurance
against theft and fire incident, with which their loans are been insured. It
also insures its staff by SAAR against some particular sickness. And finally
old age pension insurance by CNPS.
 Staff environment: The staff environment is the best since there is tight
security ensured by the manager and staff as a whole but all the staff is
insured by SAAR insurance for health policy.
 Outreached: As explain above we can see that UNICS plc. is spread out
almost all over Cameroon (Douala, Yaoundé, Limbe, Buea, Kribi, Bamenda
and others) to be close and reached all its clients or future client.
 Weaknesses
It is absurd to know that a financial institution is void of weaknesses.
However, one could say that UNICS is void of weaknesses affecting the
institution.

30
  Limited reception: UNICS Buea branch is a Small building making the
reception to be small as well that sometimes customers are force to stand
when all seats are occupied (congestion).

 Limited staff: As notice above the branch staff is limited (the manager,
teller, CSO and OPS) making work very studious and stressful for the
present staff. For example, there is one teller which, during salary payment
her work is so bulky and stressful. And also all the work of the loan officer
is been done by the manager.
 Limited network services: most at time UNICS Buea branch is out of
connection (network disturbance) or the platform date is not updated which
stress, slow and force the teller to either wait or use alternative means.
 Most documents in the branch are not updated i.e. fliers which is very
important for advertisement.
 Limited branch: As said above branches are not yet all over the country i.e.
there are still some parts of Cameroon not even knowing about UNICS. but
notwithstanding the number of branches does not actual say performance

4.2 PERSONAL EVALUATION OF THE INTERNSHIP

4.2.1 Positive experience

Change of dressing mood: During the period of my internship, I was not only
drilled on acquiring good banking skills, but I was also counselled on necessity of
good dressing especially as a professional
Career Orientation: We were given advice on what to do as a banker, like being
time conscious, software orientated.
4.2.2 Negative experience
The only negative aspect the intern faced during this period of training was
language barrier which had to do with French interpretation

31
 CHAPTER FIVE

5.1 RECOMMENDATIONS
UNICS Plc., Buea is one of the best MFI as far satisfying the needs of its
customers is concerned. However, they need to improve on their services. This can
be done by employing more staff making operations to be more flexible and
reducing the load burden on a single individual. The people in charge of the
network of UNICS should make sure before all their branches open the platform is
updated and ready for transactions. Also, I realize that the branch loose western
union customers, so for that I will recommend them to start back the service. And

32
to update some important things like fliers which can be shared to customers and
information about the institution.

5.2 CONCLUSION

UNITY CORPERATIVE SOCIETY (UNICS) is a financial institution that any

one should desire to belong and to deal with without any fear. This is because it is
an institution whose present and future growth is secured. This is reflected in its
opportunities strength which overcomes its weaknesses and threats examined in the
previous chapter. Also UNICS PLC has greatly contributed to the growth of its
environment through its affordable and reliable services to its members and non-
members. Which has been existing since 1998 and will continue to exist forever is
the best place to belong to.

REFRENCE

WWW.UNICS PLC .COM

33