The role of micro-loans to the economic welfare of youths in Masaka municipality Nyendo-Senyange division

Abstract

The thrust of the study lies in finding out “The role of Microloans to the economic welfare of youths in Masaka Municipality Nyendo-Senyange Division with a case study of MAMIDECOT” The review of Literature was collected using the set objectives which were, to examine the ways in which micro loans have succeeded in poverty eradication among youths, to examine the factors influencing loan repayment by the youths and to establish the relationship between micro loans and entrepreneurship To achieve the set objectives, the tools used in study in collecting data involved use of questionnaires, interviewing and secondary data got from various books from the library and from the internet which made data collection and analysis easier .The study involved 36 respondents of which were clients and staff of MAMIDECOT. The study revealed that males are the majority of the clients served by MAMIDECOT. Majority of the clients had used micro loans from 3-5 years. Research found out that most of the youths fight poverty through getting loans from these financial institutions due to the their accessibility, and they are invested in different ventures like retail shops, farming, poultry keeping among others. The findings of the study revealed that micro loans played a great role to the economic welfare of youths and most of the youths used micro loans to pull themselves out of poverty. Micro Finance Institutions were influenced by political and economic environment. The researcher recommended the MFIs to try to lengthen the loan payment period for the borrowers