Contribution of microfinance loan on socio-economic development of its beneficiaries-A case study: Duterimbere mfi (Microfinance institution) Rwanda

The study set to assess the contribution of Microfinance Institutions on socio-economic development of beneficiaries specifically in Nyarugenge District. A cross section research design was used to reach the respondents. The target group for the present study was the Duterimbere’ beneficiaries in which a sample size of 150 was used to select respondents. Primary data were collected by using, questionnaires, and observation and focused group discussion while secondary data were obtained from documentary sources such as magazines, books, newspapers, manual files and journals. Quantitative data from structured and semi-structured questionnaires were analyzed using Excel and Statistical Package for Social Sciences (SPSS). The results obtained were used to make correlation between Microfinance Duterimbere and socio-economicdevelopment of beneficiaries. The findings shown that the correlation of 0.64 (68%) was located in the interval [0.50–0.75] and categorized as a positive and high correlation. As the significant level is at 0.01(1%), the p-value of 0.000 (i.e. 0.0%) is less than 1%. These findings led to confirm that there is a relationship between microfinance Duterimbere and socio-economic development of its beneficiaries. The study recommends that, MFI should continue considering thetraining of its beneficiaries in creating business activities and the government should strengthen the MFI to be able to operate like banks and loan opportunities be channeled through them.