Assessment for rural micro-finance services and demand in Tanzania: a case study of Kibaha District

The objective of this study was to assess micro-finance services and demand in rural areas, specifically to examine the saving borrowing procedures and determine the types and significance of micro-finance institutions in rural areas. The research used simple random sampling (SRS) and purposive (PS) methods. Questionnaires and documentary were used as data collection methods. The study data were drawn from two villages namely Lulanzi and Mwendapole in Kibaha District. The sample comprised of 70 respondents. The study showed that, 80 of the respondents they were not aware on the conscious of the financial institutions that operate in their villages. about 80% of respondents said that they never borrowed from any financial institution while 45% of mentioned the poor income as a root factor for not fascinated with credit 25% of respondents pointed out that there is high interest rate that changed by financial institutional. The commonest way of savings in rural areas is in the form of farm produce which accommodates 64.5% of the respondents. 75.1% of the respondents at one time or another save their income in money or cash. The emerging implication from this study is that the rural microfinance services reach few rural people compared to the entire rural population. Also the provided services are less encouraging rural activities such as agriculture, livestock and fisheries due to high rate of interest, short period for credit return and lack of entrepreneur skills among rural dwellers. This suggesting that the micro-finance services should be reaching many rural people and the cost procedures for credits and savings to rural people should be reduced. The business and entrepreneurial skills should be provided among rural people for sustainable activities.