The impact of WSACCO loans on the household welfare of its members: a casestudy of WSACCO Bombo, Branch

Abstract

Household Welfare is an important impetus for all soldiers in the UPDF. The need for good welfare for soldiers led to the creation of Wazalendo SACCO. The SACCO provides financial assistance through loans which enable them to improve on their welfare. Wazalendo SACCO are offered at competitive interest rates of 12 to 13% depending on period to guarantee a return on investment. This study seeks to analyze the impact of Wazalendo SACCO loans on the household welfare of its members where it will seek to find out the influence of Loan Amount on household welfare of Wazalendo SACCO members, to examine the influence of loan accessibility on household welfare of Wazalendo SACCO members, to find out how interest rate of loans affects household welfare of Wazalendo SACCO members and to find out the impact of Transaction costs, and loan repayment period on household welfare of Wazalendo SACCO members. The study was cross-sectional descriptive study where a total of 100 members of Wazelendo SACCO were selected using simple random sampling. The data was collected using self-administered questionnaires. Also the data was analyzed using SPSS software where univariate analysis analysed the descriptive statistics, bivariate analysis, data was cross tabulated to analyse the significance of the variables. Multivariate regression analysis was used to analyse multivariate data. In conclusion, the study revealed that loans provided positively impacted Wazalendo Sacco Members whereby it was revealed that loan size, interest rate, and loan repayment period were the major factors responsible for influencing household welfare. I also recommend that there is need to carryout future studies on how Wazalendo Sacco loans affect other people who are not attached to the SACCO.