MJAMR

Impact of Micro Credit Finacing on Agricultural Production. Acase Study of Bundibugyo District in the Western Region of Uganda

Kahero Jowin, Natukunda Charles, Alex Irumba


Abstract

The study was aimed at knowing the impact of microcredit financing on agricultural production. BRAC and HOFOKAM Uganda were the major micro credit institutions in this study. The services provided include savings and credit, assistance with group formation, business information and training services to their clients. Utilization of the services was to enable the farmers to increase their production, their income levels, reduce poverty levels. Despite MF efforts to reach the farmers in rural communities, some farmers are still unable to enjoy the services provided, their level of poverty is high, and their general welfare is also low. The study was guided by both general and specific objectives; to find out the factors limiting famers from getting micro credit loans in Bundibugyo district, to examine the challenges micro credit facilities face in giving out loans to farmers, to examine the possible measures to overcome the factors hindering farmers from getting micro credit loans. The study was also based on a descriptive case study research design and both primary and secondary data was used in the study. Primary data was obtained with the help of researcher-administered questionnaires. The findings were analyzed in line with the objectives and found out that MFIs have to a greater extent contributed to agricultural production in the area. Through the services rendered, the MF clients were able to increase their production and hence increasing their income and thus reducing the level of poverty among the farmers. However, MFIs are faced with challenges while serving the people in the area that included high transaction costs, lack of appropriate products for the poor. And MFIs have tried to put in place strategies to help overcome some of the challenges like research.miu.ac.ug/publications 374 METROPOLITAN JOURNAL OF BUSINESS & ECONOMICS (MJBE) ISSN 1813-4238 Vol. 2 Issue 5, August - 2023, Pages: 374-383 the classification of the farmers so that they can be assisted accordingly, adoption of credit registers.

Keywords

micro credit financing financial institutions agricultural production
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Kahero Jowin, Natukunda Charles & Alex Irumba (2023). Impact of Micro Credit Finacing on Agricultural Production. Acase Study of Bundibugyo District in the Western Region of Uganda. Metropolitan Journal of Academic Multidisciplinary Research, 2(8). https://journals.miu.ac.ug/pages/article.php?article_id=1313

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