Relationship between Micro-Finance Development Loans and the Social-Economic Well-being of SACCO Members in Buhweju, Ibanda and Kamwenge Districts of Rural Uganda

Abstract

The  study  titled  ‘Relationship  between  Micro-Finance  Development  loans  and Social-Economic  Well-being  of  SACCO  members.  The  study  specific  research objective  was  to  establish  the relationship  between  development  loans  and  the  socio-economic  well-being  of  SACCO  members.  The  study  adopted  a  cross sectional design to gather data using questionnaire and interview guide as well as documentary  review  guide.  SPSS  was  used  to  analyse  data.  The  study  found  out that development loans of SACCO were not significantly related to socio-economic  wellbeing of  members.  Although  there  was  development loans acquisition among  SACCO  members,  there  was  no  significantly  improvement  in  socio-economic well-being of  members.  This  was  because not  every  member took  up development loans since these kinds of loans are only optional. Many members therefore don’t take them up for fear of interests and repayment repercussions accruing therefrom The study recommends that SACCO should reduce on the loan interest rates.