IMPACT OF SAVING AND CREDIT COOPERATIVES ON SOCIO-ECONOMIC DEVELOPMENT OF CUSTOMERS IN RURAL AREAS CASE STUDY: SACCO URUYANGE RUKOMA (2020-2023)

Abstract

The study is titled by impact of saving and credit cooperatives on socio-economic development of customers in rural areas. Case study: SACCO Uruyange Rukoma (2020-2023). The general objective is to assess the impact of saving and credit cooperatives on the socio-economic development of customers in rural areas. The specific objectives of the study is to analyze the extent financial services offered by SACCO Uruyange Rukoma may lead to customer satisfaction and productivity, assess the effect of limited access to loan on the socio-economic development of customers of SACCO Uruyange Rukoma and determine the relationship between financial services offered by SACCO Uruyange Rukoma and the improvement of the socio-economic development of its members. The population of the study is 19,790 customers of SACCO Uruyange Rukoma with a sample size of 100. The techniques used to collect data were documentation, Interview and Questionnaires techniques while the data analyzing methods of the study were analythical, historical and statistical methods. The results of data analysis shows that in 2020, the highest loan amount was granted to the Commerce, Restaurants, and Hotels sector with a total of 86,850,650. This was followed by Public Works (Construction), Buildings, and Residences/Homes with 28,015,078. Before using the services of SACCO Uruyange Rukoma 51.0 of respondents said that their children dropped out while after using the services of SACCO drop out was reduced by 1%. Before getting the loan, 15.0% of the respondents from the sample said that was to build their owner house but after getting services from SACCO URUYANGE RUKOMA 39.0% of respondents were able to build their owner house, 81.0% of respondents rented house before getting credit while after getting credit the Frequency who live in rent reduced at 15.0%. There is a fantastic strong correlation between SACCOs and the socio-economic development of its members as the Pearson correlation confirmed (r=.543 with a p-value of 0.000 < 0.01); however, out of taking into consideration different factors affect the socio-economic development of its members has a vast and high relationship of 54.3% for SACCOs and factors contributing to the SACCOs in Rwanda. The researcher recommended SACCO Uruyange Rukoma should think and ask BNR to revise the interest rate scheme to an affordable rate so that members can be able to access loans since the study revealed that high interest rates are limiting lower income from applying for loans and SACCO Uruyange Rukoma should assist the owners of small businesses in getting loans. It should simplify the procedures associated with loan acquisition.