- Title
- The role of microfinance institutions in poverty alleviation in Limpopo province
- Creator
- Hlungwani, Kholofelo
- Subject
- Microfinance -- South Africa -- Limpopo
- Subject
- Small business -- Finance Poverty -- Economic aspects -- South Africa -- Limpopo
- Date Issued
- 2018
- Date
- 2018
- Type
- Thesis
- Type
- Masters
- Type
- MPhil
- Identifier
- http://hdl.handle.net/10948/30320
- Identifier
- vital:30930
- Description
- In many developing nations, the majority of poor people live in rural areas. Yet, most of them do not have access to financial services needed to sustain their living standards. Poverty remains high in many developing nations, despite numerous non-government and government efforts to alleviate poverty through microfinance. Further, poor people are not unique to rural areas; they are present in urban areas too. Poverty remains prevalent and much remains to be done to improve the quality of life for the poor people. This study examines the role of Microfinance Institutions (MFIs) in poverty alleviation for both rural and urban areas of Limpopo Province. This study was aimed at investigating how MFIs are benefiting low-income earners in the rural and urban areas of Limpopo Province. Mopani District in Limpopo Province was the study area. Forty five MFIs clients were interviewed as well as ten MFIs in the. This study adopted a mixed research approach. Primary data was collected through structured and semi-structured questionnaires, while secondary data was collected from published and unpublished materials. The findings of the study revealed that MFIs operating in Mopani District only provide credit facilities to their clients. The services are provided to all gender, salary earners, pensioners and residents of both rural and urban areas. The interest charges on the credit ranged from 5% to 40%. The collateral security required was certified ID, payslip, bankcard, and proof of residence and personal assets. The study established that those clients that accessed loans from MFIs were able to improve their standard of living through start up and expanding their businesses, paying school fees, building and improving their house and affording private health facilities. The research found out that there are challenges faced by both MFIs and MFIs clients. MFIs indicated that they faced challenges such as increased competition, lack of information about the client, profit performance and attracting low –income clients. However, the clients indicated that MFIs charge high interest rates. The respondents recommend that MFIs could lessen interest rate, increase on the amount given as loans to their clients and assess repayment capabilities before offering loans. For MFIs client’s respondents recommend that to improve the standard of living clients could get investment opportunities.
- Format
- xiv, 109 leaves
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economics Sciences
- Language
- English
- Rights
- Nelson Mandela University
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| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | KHOLOFELO HLUNGWANI.pdf | 825 KB | Adobe Acrobat PDF | View Details Download |