The impact of microfinance on urban poverty alleviation

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University of Dar es Salaam
The main Purpose of this study was to examine the impact of Microfinance Institutions on the alleviation of Urban Poverty. To achieve this objective, the research was done through a survey of 165 individuals (150 borrowers and 15 non borrowers). The Research was conducted in the FINCA branch in llala, Dar es Salaam Region. Data was collected using questionnaires which were distributed to FINCA clients and officials. Data was analyzed quantitatively. Histograms and frequency distribution tables were used to present the findings. The SPSS method of analysis was used. The results showed that the income and the level of employment of participants are greatly influenced by loans obtained from Microfinance Institutions. The income level of borrowers was found to increase compared to non-borrowers. Further, the results show that Microfinance credits have an impact on the alleviation of poverty but do not affect individual control and autonomy to make decisions on business affairs. The study recommends that MFls should revise the lending conditions especially the interest rate, the repayment period and also device a new way to other clients in the group or of tackling loan defaulters instead of leaving the burden to confiscation Lastly, there is a need to conduct further study to assess the capabilities and strength including ways that MFls could use to help clients and eventually lead to poverty alleviation in the country. Indeed, the study has gradually evolved an appreciation of the need to do similar study in other Regions of Tanzania where credit schemes operate.
Available in printed form, East Africana Collection, Dr. Wilbert Chagula Library
Microfinance, Poverty, Alleviation
Manumbu, D.S (2007) The impact of microfinance on urban poverty alleviation