Lending Policies and Access to Credit by Women Entrepreneurs in Selected Commercial Banks in Rwanda

ABSTRACT The study on lending policies and credit access among women entrepreneurs in selected Commercial Banks in Rwanda was based on descriptive correlation survey designs. The researcher used SAQ to collect primary data from 162 customers, using simple random sampling. Data analysis was done using SPSS’s relative frequencies on respondents profile; means and standard deviations on lending policies and credit access; and PLCC on the relationship between independent and dependent variables. The study was based on four specific objectives: (i) to determine the respondent’s profile in terms of age, marital status, level of education, type of business, experience in that business, name of the bank and experience with the bank, (ii) to determine the extent of the of existing lending policies in selected commercial Banks in Rwanda, (iii) to determine the level credit access among women entrepreneurs in Rwanda, and (iv) to determine the relationship between lending policies and credit access among women entrepreneurs in the selected commercial banks in Rwanda. This study findings revealed that majority of the respondents were above 40 years and married, those with A- level academic qualification dominated the study, most were engaged in retail business with experience of at least 2years and above, majority were customers of BPR particularly Remera branch and they were customers for these banks for relatively a very long period ranging from three years and above. The study went ahead to reveal that the level of lending policies was very high at (mean=3.78); the level of credit access by female entrepreneurs was found to be moderate at (mean=2.79); and the study went ahead to reveal that lending policies positively and significantly influence access to credit by female entrepreneurs in selected commercial Banks in Rwanda. The researcher recommended that Government should make lending policies flexible to reduce bureaucracy and time spent on loan processing. Banks should make thorough investigation need to be made to ascertain customer’s ability to service the loan, help customers in business initiation inform of training and capacity building.

TABLE OF CONTENT

Chapter Page

PreHm~nary pages

Declaration A

Declaration B ii

Approval sheet iii

Dedication iv

Acknowledgements v

List of Acronym vi

Abstract viii

List of Tables xii

ONE THE PROBLEM AND ITS SCOPE 1

Background of the Study 1

Problem Statement 4

Purpose of the Study 5

Research Objectives 5

Research Questions 5

Hypothesis 6

ix

Scope of the Study 6

Significance of the Study 6

Operational Definitions 7

TWO REVIEW OF RELATED LITERATURE 9

Concepts, opinions, Ideas from author/expert 9

Theoretical Perspective 13

20

THREE METHODOLOGY 22

Research Design 22

Research Population 22

Sample Size 23

Sampling Procedure 24

Research Instrument 24

Validity and Reliability of the Instrument 24

Data Gathering Procedures 26

Data Analysis 27

Ethical Considerations 27

Limitation of the Study 27

FOUR DATA PRESENTATION, ANALYSIS AND INTERPRETATION 29

Profile of the Respondents 29

Extent of existing Lending Policies 33

Level of Credit Access among Women Entrepreneurs 37

Relationship between Lending Policies and Credit Access 41

FIVE FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 43

Summary of the Findings 43

Conclusions 44

Recommendations 45

Areas for further Research 47

References 48

Appendices 51

Appendix I: Transmitta[ letter from CHDR 51

Appendix II: Transmittal letter from Government 52

Appendix III: Informed Consent 53

Appendix IV: Research Instrument 54

Appendix V: Sample of Commercial banks’ credit policy 59

Appendix VI: Researcher’s Curriculum Vitae 83