| dc.description.abstract | The main objective of the study was to assess the impact of microfinance services on the
livelihoods of the rural people in Kayabwe Parish in Nkozi Sub-County. The study
specifically assessed the impact of credit and savings on the livelihoods of the rural
people and challenges rural people face in accessing MFI services.
The study further explored other studies done by scholarly persons in relation people’s
perceptions and attitudes towards borrowing and using credit, reasons why people save
and challenges faced by rural people in accessing MFI services.
The study adopted a research design which included field survey and the data was
collected using three research instruments that is, questionnaires, interviews and
observation. Respondents were drawn from the clientele base of various MFIs in Mpigi
and representatives from MFIs. A sample of 92 was selected using simple random
sampling technique. A pre-tested questionnaire was used to gather information about the
study variables.
Findings revealed that MFIs services improve on the livelihood of rural people amidst
other several poverty reduction measures. Majority of the borrowers in this community
get small loans from MFIs as opposed to commercial banks that require conventional
collateral security which most rural people lack. Social support in form of group
solidarity is among the collateral security low income earners in Kayabwe present to
MFIs in order to get a loan. Findings also affirmed that demand for voluntary savings
among the rural people is higher than compulsory savings.
Based on the findings it is recommended that MFIs should make their credit access
methodologies simple, reduce on the interest rates, increase grace period for loan
repayment, make people’s savings easily accessible and establish their branches in rural
areas to curb the problem of long distances by the clients. | en_US |
