A Research Proposal Submitted in Partial Fulfillment of the Requirements for
Award of the Degree of Master of Science in Accounting and Finance of Mzumbe
University
Problem of low access to microfinance loan in Mwanza city has contributed to many
people fail to complete their projects or venture new business, the study analyzed
determinants that were the main reason to the failure of access to microfinance loans so
as to get some insight into what exactly was the situation of this problem among
borrowers.The problem may be to the clients failure to meet some criteria or to the MFI
luck of enough fund or too many conditions set in order to obtain loan,the research
looked this to come up with the findings. The research used descriptive research design
and purposive data collection to explore those determinants.
The study used a target population of 13455 borrowers from which a sample of 349 was
selected systematically. Documentary technique was used to get secondary data while
questionnaires and personal interview served in collecting primary data. The
frequencies, percentages, means, standard deviation, and T-test were used to analyze
data. The study revealed that there was poor means of information dissemination,
inadequate capacity building, and customer discrimination by some of the MFIs.
The best predictor of access to microfinance loans was found to be the loan application
process,amount requested by clients and what was given out by MFI followed by the
means of information dissemination and lastly by the capacity building to see if clients
will use the money according to what they requested for. Based on the findings and the
conclusions the researcher recommended that MFIs should be involved in improving
means of information dissemination, developing modules and performing seminars to
increase knowledge of borrowers, ceasing to be stringent and lessening loan application
process. There was need for further research to involve the effectiveness and the impact
of Microfinance Institutions in poverty reduction to the community.