Contribution of microfinance on women empowerment case study of Vision Finance company ltd Nyaruguru
par Albert RUTAYISIRE
Protestant institute of arts and social sciences - Bachelor's degree in Business studies with education 2016
The findings may be useful to microfinance institutions to strengthen and expand their support to rural poor women. Microfinance institutions should conduct usual meeting with the beneficiaries to make them aware about the use of loan in proper business. Govt. and NGOs, on the basis of the study findings, may formulate its policy to empower rural women socially and economically. Based on the above conclusions, the following recommendations are suggested:
1. Microfinance institutions should try to extend more credit facilities to clients to expand their businesses since the study results confirmed that microfinance had a positive impact in empowering rural women.
2. It was also suggested that MFIs should raise-up the loan amount for supporting the business of their target group
3. MFIs should adapt existing training programs and set up new ones in response to clients' needs. With respect to introductory training, as previously mentioned, transparency and full understanding of loan modalities must be ensured.
4. MFIs should pay attention on their target group including the ones in the extreme poverty. This un-bankable group, it should be better to be linked with the NGOs or government to provide direct support more than linked with MFIs.
5. The design of products and services should also be made flexible to reflect the needs of the poor especially women. As was found out by this study, microfinance is most directed to income generating activities, or delivered to those who have existing businesses, street trade or physical collateral.
6. This excludes a large majority of the poor people who would need the products and services and cannot afford this collateral. It's thus important to mention that there is need to improve the design and outreach and to see MFI as part of the package for targeting the poor.
7. Incentive systems should be set up on all levels to encourage MFIs to incorporate strategies and activities supporting women's empowerment into their work. The key here is not to provide more funds in general, but rather to specifically reward promising and/or effective approaches.
8. Despite increasing competition between MFIs to disburse loans, both and its member MFIs must ensure that loans are given responsibly to clients who can afford them. It should also encourage MFIs to re-evaluate their effective interest rates, requests for collateral and policies on group guarantees as well as punitive and legal measures in case of non-payment. Such measures will guarantee responsible finance and ensure that the current largely negative image of microcredit is counter balanced.
9. The Government should provide some fund and subsidies to MFIs in order to help MFIs delivering financial services at low price (interest rate) as they serve the poor people.
After carrying out the research and learning some problems in the field on the project entitled «the contribution of microfinance institution on women empowerment » a research is suggested on the following areas:
- The impact of banking institution on women empowerment
- Accountability and performance as tools for proper functioning of microfinance institutions
- The impact of microfinance institutions credit services in poverty alleviation in rural areas of Rwanda
- The importance of using mobile banking within microfinance institution on their performance
- Factors that can lead to poverty reduction since microfinance institution is one of them,
- Proper loan application assessment skills towards viable institutions,
- Commercialization of microfinance services and products offered by microfinance institutions.
9Impact, le film from Onalukusu Luambo on Vimeo.