Role played by microfinance institutions in poverty alleviation: case of Kreamorn Microfinance
Chigome, Tendai A.
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The study investigated on the role played by microfinance institutions in poverty alleviation. The research aimed at determining the role which Kreamorn finance plays in alleviating poverty and improving the social welfare of the poor. The study made use of descriptive case study design using the case of Kreamorn finance in Chegutu. The target population was 300 clients who were being served by Kreamorn finance. The researcher made use of secondary and primary data through the distribution of closed ended questionnaires and as well conducting interviews. The sample comprised of 168 respondents and simple random sampling was employed in choosing clients. The researcher employed the Microsoft excel in data analysis. Research findings were presented through the use of graphs, pie charts and tables. The study found out that microfinance institutions have a positive impact on the welfare of the poor as it increases the income levels and standards of living for the poor. The results showed that individuals were becoming financially independent due to continued use of Kreamorn financial services. However, despite the positive impact it was discovered that clients were faced with challenges of high interest rates charged by the institution, short repayment period and lack of collateral needed by the institution as security. The study recommended that Kreamorn should impose collateral affordable by everyone and as well enable clients to gather their borrowed funds within a reasonable time period