The role of microfinance in the socio-economic development of women: a case of Kinondoni District in Tanzania

The objective of the study was to establish the role of microfinance in the socioeconomic development of women. The study was carried out using both quantitative and qualitative methods. Questionnaires and interviews were used to collect the data that was presented in tables, graphs and numbers to show the role played by microfinance in the socio-economic development of women in a community. The findings of the study reveal that women who accessed the loans from MFIs were able to improve their socio-economic status through starting up and or expanding investments and enterprises, paying school fees for their children, purchase of household items like furniture, land, building of houses, confidence building, participation in leadership roles etc. the research also found out that women face some challenges in their access and utilization of the MFI services and these include; small amounts of money disbursed, diversion of funds, high interest rates, low returns on investment, short grace periods, unfavorable repayment schedules and risk of property confiscation by the MFI. The respondents recommended that the government should intervene, especially where interest rate is concerned. As far as the MFIs are concerned, the respondents recommended that they should lower the interest rate, empathize with their clients, monitor and supervise more vigorously, increase grace period and enlist the support of employers in the area for the microfinance beneficiaries, the beneficiaries recommended that they should not divert the funds but should use them for the purpose intended.