Impact of village savings and loans association on people’s welfare:

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Kampala International University, College of Economics and Management
The study was conducted in Lapul sub county, Pader district Northern Uganda under the topic “impact of village savings and loans association on the rural household welfare. The research considered a population of 80 people out of which a sample size of 70 respondents was equally selected from the total population to give them an equal opportunity to participate in the study. The study had three major objectives which were; to evaluate the contribution of VSLA on household’s education, measure the impact of VSLA on rural household assets, and to assess the attribute of VSLA on nutrition and health. The data collection was through self- administered questionnaires and interview and equal chances was given to all the members of the SACCOs to participate in the impact study. With the help of simple random sampling techniques statistical package used for analysis was SPSS and the results were presented in form of tables, pie charts and graphs. The key findings of the study are as follow: the average monthly income of the old VSLA participants is statistically significantly different from and larger than those of members who are not operating the cycle, further evidence from the research showed that there is a positive and significant relationship between participation in VSLAs and household asset accumulation. Considering education, the mean education expenditure of VSLA participants was found to be drastically different from and larger than those of the non VSLA participants. The results also show that participation in VSLAs significantly reduces the probability of having school drop — out children in the family. A VSLA is a time-bound accumulating savings and credit association (ASCA). In it, 15 to 30 people save regularly and borrow from the group fund. Loans are repaid with interest, and have a period usually between one and three months. On a date chosen by the members, usually after about a year, all the financial assets are divided among the members in proportion to each one’s savings. This payout is called the “action audit”. The groups normally re-form immediately and start a new cycle of savings and lending.
A Research Report Submitted to the College of Economics and Management in Partial Fulfillment of the Requirements for the Award of Bachelors Degree of Economics of Kampala International University
Village savings, Loans association, People’s welfare, Lapul sub county, Pader district Uganda