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|Title: ||Roles and challenges of microfinance institutions in rural Ghana: The case of selected institutions in the Bekwai Municipality.|
|Authors: ||Effah, Michael|
|Issue Date: ||25-Jan-2017|
|Abstract: ||The main objective of microfinance programs is to improve incomes generation and broaden financial markets way of providing financial services to the poor and small-scale entrepreneurs mostly in rural communities who otherwise lack access to capital markets. The passion for microfinance rests on the idea that low income people deserve financial services just as much as those who have plenty. The purpose of this study was is to identify and examine the roles of microfinance institutions in Ghana, their effects on the livelihoods on the rural people as well as challenges facing the microfinance institutions in rural areas in Ghana with the focus on the Multicedit and Odotobri Rural Banks in the Bekwai Municipality using a total of 120 sampled respondents consisting of 110 MFI clients and 10 management members of the selected MFIs. Data were collected using structured face to-face interviews and questionnaires, and analyzed using frequencies and percentages, means, correlation and regression, with the significance level of .05 was considered.
The study found that the MFIs have several strategies to increase incomes and reduce poverty including granting of quick loans, encourage savings, loan monitoring and education and training. The hypothesis for the study was clearly justified. The study demonstrated a significant influence of MFIs credits on income levels of the borrowers. The study also demonstrated some challenges facing the MFIs such as loan defaults, corruption and forgeries, high costs of transactions and operations, poor loan monitoring and limited support for capacity building. The study has made some recommendations to improve the services of the MFIs to help increase incomes and reduce poverty such as increase in the loans given, improve the technical and business skills of clients and adequate training and education of staff members.|
|Description: ||A thesis submitted to the Department of Economics, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirement for the degree of Master of Science in Economics, 2016.|
|Appears in Collections:||College of Arts and Social Sciences|
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