Characterizing tanzanian microfinance institutions’ (mfis) customers

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University of Dar es Salaam
This study aimed at determining the characteristics of Microfinance Institutions customers. The characteristics based on gender, business size and experience in business. Additionally, the relationship between customers’ characteristics and loan conditions attached to them were tested. A sample of 160 MFI clients was drawn from microfinance using simple random sampling. The study presented empirical findings basing on 160 beneficiaries who responded. Descriptive statistics, with chi-square test for significance and data reduction method were used to present the characteristics. Results show that majority of MFIs’ respondents had borrowed from other institutions namely banks, and or other MFIs. Most of them were however running micro business. Also results on borrowers’ characteristics revealed positive significant relationship between gender and loan condition attached at 5% level of significance, and 1% level of significance on the relationship between business size and loan conditions attached. There was no relationship between business experience and loan conditions. Furthermore, findings show that repayment flexibility, loan services, availability of financial services, loan conditions, loan accessibility and customer services were the most important factors that MFI clients considered. The study recommended that knowing customer’s characteristics enable MFIs to establish proper loan conditions that reflect the real situation of their customers. With this being implemented it will result into value addition to the loan providers and generate profit that will benefit customers in eradicating poverty and, hence, economic growth and development.
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micro finance, tanzania, mfi
Makyao, J.A.(2013). Characterizing tanzanian microfinance institutions’ (mfis) customers. Master dissertation, university of Dar es Salaam. Available at (