Cooperative micro loans and individual standards of living, a case study of kihondo sacco Bundibugyo district

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Kampala International University, College of Economics and Management
The research report was entitled "Cooperative Micro Loans and Individual Standards of Living, A Case Study of Kihondo SACCO Bundibugyo District". The study research was guided by the following research objectives; to determine whether poor people improve standards of living through accessing micro loans, to explore benefits of accessing micro loans on the standard of living of poor people and to determine challenges faced by borrowers. The researcher used both open and closed ended administered questionnaires in order to obtain first-hand information. The open ended questions was used because it saved time, helped the researcher to easily compare the responses from different groups, permit greater depth of response. Closed questions, the researcher used closed questions because they were economic to use in terms of money and time and were also easy to administer since each item was followed by alternative answers. From the field study respondents revealed that accessibility to credit facility gives chance to borrowers to start business by accessing business loans. These respondents were in agreement with,(Bajwa. 2001) who elucidated that easy accessibility to credit facility from a micro credit institution enables the borrowers to engage in businesses that can increase their productivity and ownership of assets. Basing on data from the field the researcher concludes that accessibility to credit facility is a tool tor improving the standard of living of people, if used well for the intended purpose by the borrowers because most of the respondents who said that they had used the loan for the intended purpose said that they had improved their standard of living through various ways such ways such as attainment of basic needs, construction of houses, expansion of their businesses, taken their children to school. Therefore if all people most especially the poor are given the chance to access credit facility and when the interest rate is user friendly the researcher believes credit facility can improve standard of living and the general welfare or all people at large if used well. The researcher further recommends that the time financial institution such as SACCOS and micro finance institution take to process loans should be reduced because clients go to access loans after planning for what to do with the funds but at times they are delayed hence this affects clients in repaying the loan back because they end up using the loan not for the intended purpose they borrowed for due to the delays caused by financial institutions.
Research report submitted to the College of Economics and Management in partial fulfillment for the Award of Bachelor's Degree in Business Administration of Kampala International University
Cooperative, Micro loans, Kihondo sacco, Bundibugyo district