The Factors Hindering Access to Loans: A Case of Arusha District in Tanzania

Elimuu, Ray J. (2019) The Factors Hindering Access to Loans: A Case of Arusha District in Tanzania. Masters thesis, The Open University of Tanzania.

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The study aimed to examine factor, hindering access to loans in promoting sustainable life and cost effective community finance. The study was limited to Arusha District Council; where by sample of 50 people were drawn from targeted population of 100 people at 5 wards. Both primary and secondary data were collected through questionnaires, interviews, and review of documentary records. Purposive and simple random sampling techniques were used in data collections. Scientific Package for Social Science (SPSS) Version 22 software was used on data analysis. The findings show that there is unequal distribution of finance sources and narrow alternative sources of finance available between rural and urban areas. The respondents confirm that loan is the great source of finance to start their own business, and it will be encourage to them if the interest on loan will be reduced. Also researcher reveals that it’s very difficult to access loans from some financial institutions if borrower does not have collateral. Population density is a hindering factor in development of micro financing institutions in village argued by female respondents while males’ respondents have the feeling that is not a cause. But knowledge gap can be a reason which hindering access to loans as members of SACCO’s lack the basic and necessary financial management education, which is very important to them on their success. Therefore, storytelling via publications, videos, conferences, and advocacy can be used to educate savings and loans group members to strength their relationship, networks, flexibility, transparency, and security. Hiring financial management knowledgeable people will be helpful on problem solving, performance evaluation for the better improvement of savings and loans groups, example proper financial records keeping. Also government should make deliberate effort to support access of loans to residents of rural and urban areas, example review financial policies.

Item Type: Thesis (Masters)
Subjects: 600 Technology > 658 Gerneral management
Divisions: Faculty of Business Management > Department of Accounting and Finance
Depositing User: Mr. Administrator OUT
Date Deposited: 26 Sep 2021 11:40
Last Modified: 26 Sep 2021 11:40

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