Assessment Of The Effects Of Microfinance On Rural Communities In Agona District In The Central Region Of Ghana

ABSTRACT

This study assesses the impact of Microfinance on Rural communities in Agona

District in the Central Region of Ghana. The specific objectives of the study were

to assess customers’ level of awareness of microfinance programmes in place, the

effect of microfinance on poverty reduction, challenges faced by residents in

acquiring loans from MFIs, constraints associated with the operation of MFIs and

strategies to improve the services of MFIs. A survey was conducted and one

hundred (100) customers and twenty-five (25) employees of selected

microfinance institutions in Agona Districts in the Central Region of Ghana were

selected using purposive sampling technique to collect primary data via

questionnaires. The study revealed that the respondents did not understand the

condition attached to the loan application process of the selected microfinance

institutions. Again, the customers disagreed to microfinance programmes or

institutions causing an increase in their personal assets aside providing them

better and good standard of living thus, enhancing their quality of life. Once more,

the study revealed that, difficulty in hiring and keeping well-trained staff willing

to work in a rural community and high additional costs for ensuring security and

managing liquidity were the most challenging issues facing MFIs in reaching the

poor in rural areas. The study recommended the following to the management of

the selected microfinance institutions; decrease in interest rates, increasing

motivational incentives and encouraging formal and informal education.

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APA

DADZIE, D (2021). Assessment Of The Effects Of Microfinance On Rural Communities In Agona District In The Central Region Of Ghana. Afribary. Retrieved from https://track.afribary.com/works/assessment-of-the-effects-of-microfinance-on-rural-communities-in-agona-district-in-the-central-region-of-ghana

MLA 8th

DADZIE, DANIEL "Assessment Of The Effects Of Microfinance On Rural Communities In Agona District In The Central Region Of Ghana" Afribary. Afribary, 05 Apr. 2021, https://track.afribary.com/works/assessment-of-the-effects-of-microfinance-on-rural-communities-in-agona-district-in-the-central-region-of-ghana. Accessed 23 Nov. 2024.

MLA7

DADZIE, DANIEL . "Assessment Of The Effects Of Microfinance On Rural Communities In Agona District In The Central Region Of Ghana". Afribary, Afribary, 05 Apr. 2021. Web. 23 Nov. 2024. < https://track.afribary.com/works/assessment-of-the-effects-of-microfinance-on-rural-communities-in-agona-district-in-the-central-region-of-ghana >.

Chicago

DADZIE, DANIEL . "Assessment Of The Effects Of Microfinance On Rural Communities In Agona District In The Central Region Of Ghana" Afribary (2021). Accessed November 23, 2024. https://track.afribary.com/works/assessment-of-the-effects-of-microfinance-on-rural-communities-in-agona-district-in-the-central-region-of-ghana