CHAPTER FIVE:SUMMARY,
CONCLUSION AND RECOMMENDATIONS.
5.0: INTRODUCTION
This chapter presents the summary of the major findings of the
study, conclusion, and recommendations. The research study was conducted with
an overall objective of evaluating the impact of Microfinance institutions
credit services in poverty alleviation in the rural area.
5.1: Summary of the findings
The study findings were in line with the study objectives and
research questions. The method of data collection was primary data. The data
was collected using questionnaire distribution and interviews and data was
analyzed using tables. The main research question was to find out whether
Microfinance institutions are contributing to the poverty alleviation.
To have the information collected and works done, a study was
conducted from COPEDU Ltd especially from managers and beneficiaries. The
research was entrenched by the general objective, which was to assess whether
MFIs contributing to poverty alleviation in rural areas of Rwanda.The research
revealed out that MFIs increasing income 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
tomaintain needs of life andSome 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.
In order to attain this objective, research question widely
delivered toCOPEDU Ltdwere answered. The questionnaires and interview were
delivered to a selected sample of 10 managers and officers employees and 20
beneficiaries.
ToCOPEDU Ltd, the findings will help to modify, design rules
on delay for repayment of the loan to make clients adopt the culture of valuing
loans. To microfinance institutions, the study findings will help clarity of
proper elaboration of business plans and proper management of the projects to
regularize repayment of granted loans, streamline business operations,
strategic plans on new product line for markets. Other endeavors can borrow
ideas from the research study for better improvement in microfinance industry
in the country for instance the government.
The literature review shows poverty alleviation by MFIs the
importance of MFIs in developing countries whereby they offer possibility of
managing scare households and enterprise resources more efficiently as majority
Rwandans have limited or no access to financial services. Loans are granted
with usual collateral demanded thus good business environment to the productive
poor.
More to not, the research findings are the benefits,
management and technical knowledge attained by the clients as the result of
joiningCOPEDU Ltd more of them said that they have gained much knowledge on
loan management.
What can be observed from the research findings is that,
increased income to the target group(rural areas) results in improved
socio-economic well being of the rural people.
Therefore, if research findings also show that, microfinance
services have created different positive changes in the lives of the clients
ofCOPEDU Ltd, a proof is where 87% of the selected sample said that, `they have
increased their business, 13% said to have managed to pay medical charges for
their families.
Customers ofCOPEDU Ltd are happy due to good repayment
condition. There are no rules or laws for repayment; the company does not
penalize customers for the day of repayment. Therefore repayment of the credit
is negotiable with credit office.
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