Title: Village Saving Loan Association and Poverty Reduction A Case Study of Twezimbe Village Saving and Loan Association in Kaliro District
Authors: Ounyesiga Living, Kumukyaya Phiona Nicholas Gregory Okello, Kaijuka Benson
Volume: 8
Issue: 10
Pages: 220-234
Publication Date: 2024/10/28
Abstract:
The purpose of this study was to investigate "loan associations, village saving, and poverty reduction in Kaliro district." Twezimbe Village Saving and Loan Association case study the study included 60 respondents from Kaliro Town Council, 30 of whom were VSLA members and the remaining 30 were non-members. As the study's specific aims, the research especially sought to determine the reach of VSLAs, how they affect the decrease of poverty, and the difficulties they have in operating in the Kaliro district. The study employed cross-sectional research methodology, incorporating both qualitative and quantitative research approaches. To gather information, the researcher employed questionnaires. The study is unique since it uses a sample of both VSLA members and non-members, and the researcher employed local leaders to determine which participants were non-members. Data was also gathered by the researcher using questionnaires. The particular aims of the study were to determine the reach of VSLAs, how VSLAs reduce poverty, and what obstacles VSLAs have in operating in the Kaliro town council Kaliro district. The results showed that a large number of VSLA groups were forming in the Kaliro district, and the bulk of participants were female. Results also indicated a favorable correlation between VSLA involvement and the decrease of poverty. The findings, which focused on reducing poverty through asset development and welfare enhancement, revealed that involvement in the VSLA has a generally favorable impact on a number of measures of both individual and household wellbeing. In other words, the amount invested in assets, income-generating activities (IGAs), costs associated with education, availability of healthcare, and nutrition. Members of VSLA exhibit self-sufficiency and a strong feeling of ownership, both of which are important for sustainability. The VSLA model, moreover, provides hope to those who are financially excluded and serves as a basis for other development initiatives aimed at the impoverished in rural areas. Based on the aforementioned justification, it was determined that VSLAs had helped to reduce poverty, particularly in rural areas. The researcher suggested that, in order to address the issue of insufficient loanable funds, governments and other non-governmental organizations could provide loanable money to the VSLAs. These funds should be provided at a low interest rate to ensure that members of these associations can repay them. It is also recommended that government and non-governmental organizations take the lead in providing these groups' members with accounting education and training so they can manage their associations in a cooperative manner.