Lending policies and access to credit by women entrepreneurs in selected commercial banks in Rwanda

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Date
2012-08
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Publisher
Kampala International University, College of Economics and Management
Abstract
The study on lending policies and credit access among women entrepreneurs in selected Commercial Banks in Rwanda was based on descriptive correlation survey designs. The researcher used SAQ to collect primary data from 162 customers, using simple random sampling. Data analysis was done using SPSS’s relative frequencies on respondents profile; means and standard deviations on lending policies and credit access; and PLCC on the relationship between independent and dependent variables. The study was based on four specific objectives: (i) to determine the respondent’s profile in terms of age, marital status, level of education, type of business, experience in that business, name of the bank and experience with the bank, (ii) to determine the extent of the of existing lending policies in selected commercial Banks in Rwanda, (iii) to determine the level credit access among women entrepreneurs in Rwanda, and (iv) to determine the relationship between lending policies and credit access among women entrepreneurs in the selected commercial banks in Rwanda. This study findings revealed that majority of the respondents were above 40 years and married, those with A- level academic qualification dominated the study, most were engaged in retail business with experience of at least 2years and above, majority were customers of BPR particularly Remera branch and they were customers for these banks for relatively a very long period ranging from three years and above. The study went ahead to reveal that the level of lending policies was very high at (mean=3.78); the level of credit access by female entrepreneurs was found to be moderate at (mean=2.79); and the study went ahead to reveal that lending policies positively and significantly influence access to credit by female entrepreneurs in selected commercial Banks in Rwanda. The researcher recommended that Government should make lending policies flexible to reduce bureaucracy and time spent on loan processing. Banks should make thorough investigation need to be made to ascertain customer’s ability to service the loan, help customers in business initiation inform of training and capacity building.
Description
Presented to the College of Higher Degree and Research, Kampala International University, Kampala-Uganda in Partial Fulfillment of the Requirement for the award Of Master of Business Administration
Keywords
Lending policies, Women entrepreneurs, Commercial banks, Rwanda
Citation