The Role of Savings and Credit Schemes on the Welfare of Members Case Study: Heda Sacco Hoima District

Abstract

There are several savings and credit schemes in Uganda extending financial services to low income earners. Many people take up small and easily repayable loans with the desire to improve on their welfare and that of their family members. The study was to establish the role of savings and credit schemes on the welfare of members. The study was based on the following objectives: to find out the role of credit on the welfare of members, analyze the effect of savings on member’s welfare and examine the effect of capacity building on the welfare of members. The researcher adopted a case study research design where both primary and secondary data was got from a sample size of 79 HEDA SACCO members and the staff. Primary data was obtained by use of self administered questionnaires and inter views. The secondary data was obtained from internal reports such as the disbursement by sector and the loan portfolio reports.

Findings of the study revealed that HEDA SACCO has played a significant role in the improving the welfare of its members by being able to give members credit to help them improve their wellbeing through acquiring of assets, managing their business properly and increasing investment. However some loopholes were indentified for example the vulnerable people especially the aged, those who had no sufficient security for loans were less involved in SACCO activities and even the young people are less considered which makes these people miss out on opportunities to improve their welfare.

Finally the study recommended that the elderly and the young should be considered in the SACCO activities because they have the potential to improve on their welfare and the SACCO should increase on its funds it gives to give credit so as to help sole the problem of in adequate capital.

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