Assessing the contribution of village savings and loans associations on the welfare and the development of the community : a case study of Komuge savings group in Kachumbala Sub-County in Bukedea District

Abstract

The aim of the study was to establish the contribution of village savings and loan association on standards of living or household welfare in Kachumbala Sub County. The guiding objectives were, assessing the roles of VSLAs, assessing the level of standard of living. It was a qualitative in nature. The objectives of the study were, to assess the roles of VSLAs and to assess the level of standard of living. Primary data was collected from a total of 80 households who were participants in VSLAs by simple random sampling. Comparisons were made among the participants in regard to household income, asset accumulation, and reduction in vulnerability.The study data shows that, the savings provide a financial back stone for life’s uncertainties and increases the feeling of security and peace of mind. Based on gender, the finding shows that females participate more than males that were 75% compared to 25% who were males; gender of the member has substantial influence on the improvement of household welfare. Based on this study, recommendations proposed will serve as measures to improve household welfare in rural societies or villages that is to say; By economic use of loans borrowed from any financial institutions; through enhancing participation of educated personnel in widespread of banks and other saving organs; through planning and the maintenance of lower interest rate for loans borrowed from saving organs; higher interest rates on the savings to motivate individuals do save , increasing clients trust and confidence by the financial institutions, actions to check on unemployment will all greatly achieve increased personal savings