Micro Finance Institutions and Poverty Eradication: A Case Study of Pride Africa Mbarara Branch.
The study was carried out to assess the effect of Micro Finance Institutions and poverty eradication. A case study of Pride Africa Mbarara branch. It was guided by three objectives which included; examining the effect of microcredit on poverty alleviation, determining the effect of microfinance savings on poverty alleviation, and establishing the effect of microfinance social services on poverty alleviation in Mbarara City Council. A descriptive research design was adopted in this study. The descriptive design was selected in this study because it allowed the researcher to gather numerical and descriptive data to assess the relationship between the variables. The population of the study included the employees of the Microfinance institutions and the clients of Pride Africa Mbarara Branch. Simple random sampling was used through rotary to select the respondents based on pick and play. The simple random technique solved biases as each client was given an equal chance to be selected and provide data for this study. Data collection instruments included a questionnaire and interview guide. On the effect of microcredit on poverty alleviation in Mbarara City Council, it was found out majority of the respondents, regarding the collateral security requirements are always compatible to micro-credit requirements as reported by 100%, the interest rates charged on micro-credit allow my prompt payment 90%. Regarding the effect of microfinance savings on poverty alleviation in Mbarara city council, the study findings showed that there are educational services provided to the people by this microfinance 92%, there is support for education through the provision of loans for school fees 94%, there are health services provided by the microfinance institutions 96%. The study findings showed that there are educational services in Mbarara are sufficiently available as reported by 92%, the educational establishment is operated on better policy for the management 90%, and there is supportive government education for the people in Mbarara city 100%. The study concludes that microfinance credit plays a crucial role in the alleviation of poverty at the household level in Mbarara city and Uganda at large. The study also concludes that microfinance credit helps in poverty reduction by making finance accessible to low-income earners, less educated, and those in the informal sector which helps in the expansion of business, acquisition of better residential places, access to education, health, and improved welfare. The study recommends that microfinance institutions continuously improve their outreach to enable them to reach more deserving low-income earners. To achieve this, the institutions should effectively market themselves and also fasten on service delivery as in the case of ensuring that loans applied for are disbursed on time. Further microfinance institution should also adjust their interest rates downwards to encourage increased borrowing.
Micro Finance Institutions, Poverty Eradication, Pride Africa Mbarara Branch
Musinguzi, John (2023). Micro Finance Institutions and Povrty Eradication: A Case Study of Pride Africa Mbarara Branch. Kabale: Kabale University.