Changes in Interest Rates on the Demand for Loans by Customers of Uganda Micro Credit Finance(UMF) in Seeta Trading Center
| dc.contributor.author | Jacinta Namubiru | |
| dc.date.accessioned | 2023-09-22T08:51:28Z | |
| dc.date.available | 2023-09-22T08:51:28Z | |
| dc.date.issued | 2023-09-01 | |
| dc.description | This is a dissertation. | |
| dc.description.abstract | The study was about the relationship between the fluctuating interest rates and the demand for loans by customers of Uganda Micro credit Finance in Seeta trading center. Its main objective was to examine the impact of different interest rates movement on the borrowing capacity of customers in Uganda Micro credit Finance. The study was undertaken following a cross sectional and descriptive research design and a sample size of 65 was used that was selected using a purposive technique however only 55 responses were got and the data was collected using questionnaires and a few interviews that gave the researcher used to collect the relevant information that was showing the relationship between the two variables. The findings were presented using graphs and tables and the data was analyzed using Statistical Package of the Social Scientist (SPSS). The findings collected showed an 84.4%relationship between interest rates and the borrowing capacity of the customers in financial institutions especially the customers of UMF. As 78% of the customers agreed that their demand for loans is highly based on the movement of interest rates and 80% of the respondents agreed that customers responsiveness to demand for loans changes when interest rates are changed meaning that when interest rates increase, then customers demand for loans reduces and this endangers the process for Uganda Microcredit Finance as a financial institution and therefore it needs to put in to consideration customers responses when it comes to inflation of interest rates while when interest rates are low, over 70% of the respondents agreed that customers demand more loans . The respondents recommended that the management Uganda Micro Credit Finance should carry out massive employee training when it comes to collecting funds from other sources other than credit given out so as to avoid fluctuating interest rates to a point of irritating customers and discouraging them from borrowing with the aim of collecting funds to finance the institution’s operating costs. UMF also need to come up with interest rate policies that manage fluctuating interest rates and implement them in a way that does not damage the institution’s financial status but can use them to ensure efficiency and effectiveness. In conclusion, the findings gave a clear insight on the behaviors of customers of Uganda Micro credit Finance (UMF) when interest rate fluctuate and how these fluctuations affect the performance of the organization. The findings also gave the management of the organization a clue on other factors that also cause a clear influence on customers demand for loans and as to why the people of Seeta tend to rely more on other sources of finance other than get credit. | |
| dc.identifier.uri | https://hdl.handle.net/20.500.12311/1088 | |
| dc.language.iso | en | |
| dc.publisher | Uganda Christian University | |
| dc.title | Changes in Interest Rates on the Demand for Loans by Customers of Uganda Micro Credit Finance(UMF) in Seeta Trading Center | |
| dc.type | Dissertation |