The role of micro credit on women welfare

Abstract

This study intended to evaluate the role of Microcredit on Women Welfare considering a case study of the women who are clients of BRAC Uganda which is found in Katwe-Butego division branch in Masaka Municipality. The research focused the research objectives of, The contribution of Business loan on Women welfare in Katwe-Butego division, Masaka Municipality. The role of Agricultural loan on Women welfare in Katwe-Butego division,Masaka Municipality and the effect of Education loan on Women welfare in Katwe-Butego division, Masaka Municipality. This research was based on the Women In Development theory because this theory comprehensively looks at the justifications of carrying out this study and it also supports the women’s acquisition of microcredit. In the same way, the study was based on a case study research design which is qualitative and descriptive in nature and it focused on determining the role of microcredit on women welfare. This research study used the questionnaire as the data collection tool. The study population of the study area was 1300 women from which 297 respondents were sampled using the Morgan Formula. The data was collected using questionnaires as the data collection instrument. The findings revealed that most women beneficiaries of microloan belong to the age bracket between 30-40 years with generally an education background below Advanced Level particularly a majority belonging to primary level, ordinary level while others had never gone to school. Furthermore, in reference to the findings, the Business loan is the most common microloan received followed by the Agricultural loan and the lastly, the Education loan. The findings revealed that indeed all the loans have a role on women welfare although there still remain numerous challenges when using the loans and the most outstanding challenge is the high interest rates charged. The study also revealed that there are also many challenges when acquiring the loans but the most outstanding being the too much paperwork and bureaucracy although another most women were not willing to acquire another loan in future. Hence the recommendations from the research study include policy ones like reducing bureaucracy by the loan officers and those for further research like finding a solution to the problem to diversion of the loans by the women to households which is poor usage of the loan