The Effects of Interest Rate on Borrowing and Investment to the Low Income Earners: A Case Study of Standard Chartered Bank Kampala
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Date
2010-07
Authors
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Publisher
Kampala International University, bachelors degree in business administration
Abstract
The study was carried out in Kampala district to investigate the effects of
interest rate on Borrowing and investment by the low income earners in
Standard Chartered Bank. In the study, relevant data was obtained from the
libraries such as Kampala International University, Kyambogo University,
Makerere University Business School and the internet. Primary data was
obtained through questionnaires and study guides. All the respondents that
took part in the study were randomly selected so as to give equal chances to
other respondents and the data collected was quantitatively analyzed using
tables and qualitatively analyzed using value judgment.
In the study, the sample size were forty respondents and it included twenty
small micro-enterprise owners, fifteen individual clients and five bank staffs
and found out that most of the low income groups of people don't save with
standard Chartered Bank and not all clients borrow from their bank (Standard
Chartered Bank) because of the high interest rate when saving and the low
interest rate when borrowing from Standard Chartered Bank and thus if these
factors are not mitigated, many of the low income earning groups will not
invest and their small enterprises will not grow.
Basing on the findings of the study, a number of policy recommendations have
been suggested for example, the government should set up a minimum interest
rate for savings and borrowing in all the financial institutions in Uganda in
order to encourage the low income earners to save and borrow from any
financial institution including Standard Chartered Bank hence facilitating their
investment.
Description
A Research Report Submitted to the Faculty of Business and Management in Partial Fulfillment of the Requirements for the Award of a Bachelors Degree in Business Administration of Kampala International University
Keywords
Interest Rate, Borrowing and Investment, Low Income Earners, Standard Chartered Bank Kampala