Impact of Savings and Credit Organizations Services On Poverty Reduction in Jinja Municipality

ABSTRACT The purpose of the study was to determine the impact of savings and credit organizations on poverty reduction in Jinja municipality. The study objectives were to examine relationship between loan services and poverty reduction in Jinja Municipality, to establish the relationship between savings services and poverty reduction in Jinja Municipality and to establish the relationship between training services on poverty reduction in Jinja Municipality. The study indicated a positive relationship between loan services and poverty reduction in Jinja municipality, since the sig. value (.000) was far less than 0.05. There is no significant relationship between saving services and poverty reduction in Jinja municipality, since the sig. value (.084) was greater than 0.05 and r-value (.177) and Results in table 4.8 indicated a non significant relationship between financial training brings impact on the poverty reduction in Jinja Municipality. Since the sig. value (.3 82) was greater than 0.05 which is the maximum level of significance. The researcher conclude that there existed a positive significant relationship between loan services and poverty reduction in Jinja municipality, hence it is concluded by the researcher that loan service provided by microfinance institutions plays a big role in reducing poverty in the community, it also improves on the capital of the people in Jinja municipality and thus poor loan services to will lead to a usual poverty life in the community. On the second objective, the study conclude that there is no significant relationship between savings services and poverty reduction in Jinja municipality, hence concluding that If the savings requirement is too high then members who cannot meet the stated amounts are automatically pushed out of the credit program. Regarding the third objective, the researcher conclude financial training services and poverty reduction are not significantly correlated, hence concluding that improvement in financial training services would lead to a reduction of poverty in the community. The study recommend that Savings and credit organizations need to make sure that the collateral security requirements are always compatible with the credit required by the client. The researcher recommends that Saccos always allow citizens borrow a specific amount of money and pay back through regular monthly payments with no collateral required. The researcher still recommends to the microfinance institutions in Jinja municipality to provide risk transfer services, hence improving on the insurance services provided. The savings services need to be enhanced to provide avenues for the support of the microfinance savings for poverty reduction. Regarding the relationship between financial training services and poverty reduction in Jinja municipality.