The role of microfinance banks on poverty eradication: a case study Of Centenary Bank, Arua Branch Arua District-Uganda
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Date
2012-05
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management
Abstract
The study sought to establish the "the role of microfinance banks on poverty
eradication" with a case study of Centenary bank-Arua branch and was driven
by mainly three objectives. These objectives included; the need to identify the
policies used by the Microfinance Institutions such as Centenary Bank, Arua
Branch in administering loans. The need to determine the effectiveness of the
above policies used by Microfinance Institutions such as Centenary Bank, Arua
Branch towards poverty eradication, and the third objective is to examine the
relationship between Microfinance Institutions and poverty eradication.
To achieve these objectives, the researcher sampled fifty (50) respondents from
Centenary Bank-Arua branch. The study utilized qualitative and quantitative
research methods; three data collection instruments were used, structured
interview guides and questionnaires and the collected data was presented in
tabular form and analyzed statistically to decipher findings.
The researcher was guided by three research questions; the first research
question sought to find the policies used by the Microfinance Institutions
(Centenary Bank, Arua Branch) to administer loans in a bid to reduce poverty
and the research revealed that Centenary Bank-Arua branch uses numerous
policies to administer loans such as the presentation of collateral security by
the client before giving a loan to him or her.
The second research question sought to find out how effective are the policies
used by the Microfinance Institutions such as Centenary Bank, Arua Branch in
administering loans in its fight of poverty eradication and the findings revealed
that these policies are not all that effective in administering loans as so many
clients fail to fulfill the policies and those who have already obtained the loans
sometimes do not follow the terms and the conditions of the loan agreement.
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The third research question therefore sought to find out the relationship
between Microfinance Institutions and poverty eradication in Uganda and the
findings revealed that there is a very close relationship between the
Microfinance institutions and poverty eradication in Uganda as those who are successful in getting these loans have their businesses prosper I expand, their
standards of living have improved among others.
In summary therefore, the researcher concluded that Microfinance Banks play
a very great role in the eradication of poverty in Uganda and the whole of Africa
as they grant the poor clients to have access to loans and make savings thus
expanding their businesses, improving their standards of living, increasing
their per capita income, provide an employment to many people to mention but
a few.
Description
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
Keywords
Poverty, Eradication, Banks, Microfinance