Response, Attitude and Uptake of Loans by People: Case Study of Gayaza Community

Abstract

Uganda is one of the countries with a large number of micro finance institutions which have been set-up with approaches focused on reaching the large run banked populations of the poor. The purpose of this study was to find out the factors affecting attitude and response on loan uptake by people in Gayaza community. The study was motivated by the hypothesis that loan threshold/lending condition, educational background variables have an effect on loan uptake. A survey was undertaken and questionnaires were distributed to the people from Gayaza community who were categorized into stratus randomly selected.T-test analysis was employed to determine the hypothesis individually but was not significant. One of the suggested recommendations is that a possibility of offering some clients grace periods for the initial repayment will also reduce on loan defaults. This was especially true for agricultural sector loans. Furthermore, most of the clients in the survey suggested that a longer repayment period would ease on their burden of loan repayments.