Abstract:
The purpose of the study was to assess the contribution of microfinance institutions services on social economic development of their customers in Rwanda based on the achievements made between UMUTANGUHA Finance company Ltd and customers. The specific objectives of the study were to analyze the effectiveness of financial services offered by UMUTANGUHA Finance company Ltd to their customers and the contribution of UMUTANGUHA Finance company Ltd services on social economic development of their customers. Regarding to the effectiveness of services delivered by UMUTANGUHA Finance company Ltd, respondents confirmed and agree 100% that the types of services offered by UMUTANGUHA Finance company Ltd are training, loans, savings and advices. Regarding to the effectiveness of services delivered by Microfinance institutions, respondents confirmed that the level of education of children of the people has been improved after getting a loan. Before getting a loan the children accessed on education were 10.7% at the level of very good, after getting a loan have become 55.9%. 33.4% were at good level before getting loan, after getting a loan have become 36.6%. 55.9% their children were poor, but after getting a loan the poor decreased and became 7.5%. As indicated in above table, Microfinance institutions have a crucial importance to customers to participate in future development of the country by giving them the opportunities to pay themselves and the schools fees for their children. According to the collected data, before using the services of Microfinance institutions, majority members used herbs for treating sick family member as agreed by 79.6% of respondents but after accessing the services of Microfinance institutions no one still using herbs for treating sick family member. It was revealed that before getting loan, 20.4% used to buy medicines to pharmacies without going to the health centers or hospitals but after getting loan 6.5% still used to buy medicine to pharmacies. Before getting loan, there is no one who have community health insurance/ other health insurance none were services before getting services of the Microfinance institutions but they increased up to 93.5% Generally loans given by microfinance institutions services helped the majority of respondents to access to medical care services.
