4.2.4. Response on how micro
finance institutions are helping the Rwandan rural poor population
.Micro finance institutions provide negotiable small loans to
productive rural poor population;which increases their business welfare as case
ofCOPEDU Ltd.
.Micro finance institutions give training to their clients
about the use of loans in business through counseling and consultations about
loan fund. Out of this clients end up adopting the culture of saving from these
institutions. Majority of respondents (66%) revealed that MFIs are greatly
helping the rural poor population to getting access to credit.
4.2.5. Answers to research
questions
The research had 5 questions, which helped the researcher to
get the findings.
The first question as to kwon what objectives ofCOPEDU Ltdhad
at the start. It was found out that objectives were part and parcel of their
current operations now and were; spiritual and promoting total holistic
transformation of Rwandese. Gender development especially women and other
disadvantages population groups and helping existing business grow and
encourage development of new ones.
The second question was to know what the impact ofCOPEDU Ltd
towards poverty alleviation in rural areas. The research revealed out
thatCOPEDU Ltd increasing incomes of the productive poor through having saving
sustainable business, sensitizing clients on culture of savings, even little
amount, offering simple loans to the poor people who have not been able to
maintainneeds of life.
The third question was to know how MFIs can be financed
greatly to alleviate poverty in rural areas of Rwanda. It was found out that
MFIs can be financed greatly through government policy of granting those funds,
exemption from taxes and duties from government, getting grants for loan fund
from foreign institutions with low interests, savings mobilization and
injection of new money from international bodies.
The fourth question was to know howCOPEDU Ltd has contributed
to the customers' welfare. It was found out thatCOPEDU Ltd contributes a lot to
customers' welfare in the following way; granting them loans. Some of the
clients have constructed their own houses out of simple credits; others are
able to feed themselves and their families, able to pay school fees for their
children,
Providingthose services and products, credits, savings and
business development services. Means that customers are now able to meet their
daily expenditure.
The fifth question was to know the success or outreach of MFIs
in bid to alleviate poverty in rural areas. The researcher found out those MFIs
activities support income generation for the enterprises operated by low-income
households. Many people testify that their level of living has changed.
Education for their children is financed and more improved shelter has been
built, high number of active clients leading to more savings poverty
alleviation.
4.2.5: Failures of COPEDU Ltd had at the
start.
· COPEDU Ltd targets segments of population that has no
proper access to business opportunities because of lack of markets, inputs and
demand. Productive credit therefore, is no use to such people.
· To its best wishes,COPEDU Ltd has not reached either
the minimum scale or the efficiency necessary to cover costs, due to lack of
enough experienced and qualified manpower in the field of microfinance.
· Poor management of projects leading to irregularity in
repayment of the granted loan.
· Failure to manage funds adequately enough to meet
future cash demands and recovery.
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