Microfinance services and poverty eradication in Uganda a case study of Finca (U) Nakulabye branch

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Kampala International University, College of Economics and Management
The study was set to analyze the relationship between Microfinance services and Poverty eradication in Uganda. The case study was FI7NCA (U) Nakulabye Branch. The purpose of the study was to examine the relationship between various microfinance services and poverty eradication in Uganda. The objectives of the study were to establish the impact of microfinance services on poverty eradication in Uganda and also to identify various microfinance services offered by microfinance institutions in Uganda. The study utilized descriptive research design which involved quantitative techniques of data collection. The total population was 803 clients and 51 management staff The sample size of 800 was taken as a representative sample of clients of FINCA (U) at Nakulabye Branch and 50 management staff was taken as a representative sample for the management. The findings of the study revealed that household incomes have increased for clients of microfinance institutions than those who are not clients. Similarly clients have been in position to own consumer durables and are in condition to live an improved standard of living. The research recommends that Microfinance institutions in Uganda should design client responsive products, introduce client exit surveys, have group guarantee systems, encourage Loan restructuring, train credit officers, Credit reference, charge customer friendly Interest rates, and Increase in loan terms. The researcher concluded that the services offered by microfinance institutions have a positive impact on the clients who access those services, since their standards of living is improved and they are able to establish small scale businesses as a result of accessed loans.
A thesis submitted to the school of post graduate studies in partial fulfillment of the requirements for the award of the Degree of Master of Business Administration of Kampala International University.
Microfinance services, poverty eradication, Uganda