Impact of Savings and Credit Cooperative Service on Socio-Economic Development of its Members. A Case Study of Umurenge SACCO Gisozi (2020-2023),

Abstract

Savings and Credit Cooperative Organizations (SACCOs) are effective in promoting financial inclusion, fostering economic growth, and empowering members. They serve underserved populations, such as rural populations, small business owners, and low-income earners, by providing affordable loans and savings opportunities. SACCOs also promote a savings culture by offering convenient platforms and competitive interest rates on deposits. The study work entitled Impacts of Credits and Saving Cooperatives Services on the Socioeconomic Development of Rwanda's Case Study of Umurenge SACCO in the Gisozi Sector was conducted with the aim of analyzing the impacts of Umurenge SACCO services on the socio-economic development of Rwanda . The specific objectives include the following were to examine the effectiveness of services of Umurenge SACCO Gisozi services towards ‘the socio-economic development of its members and to analyze the relationship between Umurenge SACCO Gisozi services and socio-economic development. The researcher reviewed the related literature to come up with the full idea of the study, both primary data and secondary data were obtained and analyzed, the researcher used questionnaire on random sampled of 90 people, for secondary data as well as existing literature in the text of Umurenge SACCO Gisozi annual reports were used, the collected data were present in statistical tables, analyzed and interpreted in line with the objectives to have meaningful information. The research found that 60% of respondents confirmed loan, 16.6% of respondents confirmed that they received investment in advance, 75.5% of respondents answered that their received the training on loan management from Umurenge SACCO Gisozi, with the data collected from respondents the researchers confirmed that Umurenge SACCO Gisozi offer different services to its customers to help to its welfare. The research found that 100%, confirmed that customers must present possession of security, 77.7% of respondents said that customers must have a period of a month after opening Account. 72.2% of respondents said that customers must have viable projects or guarantees; with the data collected, the researchers confirmed that there are criteria to get a loan from Umurenge SACCO Gisozi. This study recommends to digitize its Operations, to strengthen partnerships and networks to expand Capital Base and focusing on the youth and women empowerment.