The microfinance institutions (MFis) and poverty alleviation: a case study of pride microfinance limited, Arua Branch-Uganda

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Kampala International University, College of Economics and Management
The study titled "The microfinance institutions and poverty alleviation, with a case study of pride microfinance limited Arua branch ", considered a population of 48 people from whom a 42 were chosen as respondents. Three research objectives which included identifying the policies used by the microfinance institutions, determining the effectiveness of these policies and thirdly examining the relationship between microfinance institutions and poverty alleviation. Explanatory research design with study targeting the employees and clients of pride microfinance limited was used. Simple random sampling technique was used, self administered questionnaires, interviews, and observations were used to collect data. Primary data sources (interviewing respondents and use of questionnaires) and secondary sources (internet, libraries, textbooks and so on) were used. Data was analyzed qualitatively and quantitatively using computer packages Ms-Excel and Ms Word in tables, pie charts, and bar graphs. From the study findings, women were the majority with 52%, those married were 62% with majority of the respondents between the age of 26-46 years and income levels of 300,000 - 500,000 and so their financial levels have increased. The main financial services offered were loan services and mobilization of savings. Most of the clients use the loans to boost their businesses and farms. Pride microfinance limited faces major challenges of high loan defaulters and competition from other financial institutions while the clients have challenges of high interest rates and short repayment period. The following recommendations were therefore given by the researcher; good net working, government subsidization, extension of repayment periods, low interest rates, extending services nearer to the clients to mention but a few.
A Research dissertation submitted to the college of economics and management sciences in partial fulfillment of the requirements for the award of Bachelor's Degree in business administration of Kampala International University
Microfinance institutions (MFis), Poverty alleviation, Pride microfinance limited, Uganda