Analysis of problems causing low level of MFIs outreach in Tanzania: the case of pride (T)
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Date
2007
Authors
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Publisher
University of Dar es Salaam
Abstract
The main objective of this study was to explore and understand the problems causing low level of MFIs outreach in Tanzania. Questionnaire and interview were used to collect data from staffs and clients of MFIs. Pride (T) was visited whereby the findings revealed that, competition from other loan providers is one of the problem facing MFIs. Reliance on one product makes customers exit to find where they can get various products. Clients default and current city operation where many small businesses are destroyed and lack of alternative areas with are easily accessed to customers to market their products, lack of areas of establishing new branches, clients exit, lack of experienced staffs and high interest rates charged by commercial banks where MFIs used to borrow money. This causes cost of operation of MFIs to be higher hence charging high interest rate to their clients (Small Traders). The conclusion reached was that MFIs are significant in poverty reduction and improving standard of living. Measure should be taken by MFIs Players to ensure that various products will be offered in these institution’s to attract and avoid clients dropout, MFIs should find a way to reduce the interest rate charged to their clients, providing training to their clients, providing training to their credit officers on customer care lastly to enhance sustainability of entrepreneurial skills, government should ensure there is conducive environment for small traders to survive in the business rather than chasing them and destroying their business while they have borrowed money from MFIs. This leads to failure and low outreach of MFIs services because of increasing number of defaults.
Description
Available in print form, EAF collection, Dr. Wilbert Chagula Library (THS EAF HG2093.T34E45)
Keywords
Microfinance Institutions, Loans, Small business, Management, PRIDE(T)
Citation
Sara, Eliufoo (2007) Analysis of problems causing low level of MFIs outreach in Tanzania: the case of pride (T), Masters dissertation, University of Dar es Salaam, Dar es Salaam