Microfinance credit lending terms, networks and performance of women enterprises: The case of Brac Uganda Ltd, Wakiso District

Abstract

This study focuses on the main dimensions and key conceptual features of Microfinance institutions credit lending terms, networks and the performance of women enterprises. The theoretical survey of different views and conceptions characterizes the formation and development of Micro finance lending terms which greatly influences the performance of women involved enterprises. The study design was cross sectional. Both qualitative and quantitative data were collected; simple random sampling was used to select a sample size of 142 respondents. Analysis was carried out basing on the study objectives. Findings indicated that the loan repayment period schedule is appropriate, and women enterprises mainly rely on social collateral to access loans. The findings in relation to the loan size indicated that respondents were uncertain as to whether the size of the loan advanced was appropriate and there is networking among women enterprises accessing loans from Brac Uganda Ltd. However, the respondents indicated low levels of profitability, total costs of the loan are high and there are low saving levels among women accessing loans from Brac Uganda. There is a significant positive relationship between the credit lending terms, Networks and performance of women enterprises. Brac Uganda Ltd should endeavor to promote to revise credit lending terms loan acquisition procedures to make them more affordable and enable women to perform better. In addition, multiple loan products such as consumption loans should be offered so as to avoid loan diversion. In conclusion, the evidence for the effect of credit lending terms and net working on the performance of women enterprises is mixed. Some women enterprises have prospered registering increase in business assets and profitability while others have failed to take off.