Business and Economics Journal

Microfinance Impact Assessment: Linkage of Financial Inclusion to Welfare Conditions of The MFI�??s Clients in Rwanda

Abstract

Jean Bosco Harelimana

The study on microfinance impact assessment: linkage of financial inclusion to welfare conditions of the MFI’s clients in Rwanda was conducted with the aim of assessing the impact of microfinance through financial inclusion and welfare conditions of MFI’s clients in Rwanda. The study analyzed the financial indicators that were displayed by factsheet tool and the influence of financial inclusion to the welfare conditions of MFI’s clients by Statistical Package for Social Sciences (SPSS). A questionnaire was addressed to a calculated sample of 164 of clients to respond to the question for primary data and secondary data have been collected as well, to validate the primary data. In the paired analysis, there was a statistically significant increase the type of business from Time 1(M=2.6466, SD=1.58986) to Time 2 (M=4.1429, SD=2.09669), t (132)=�?¢�?�?��?7.252, p<000. The magnitude of the difference in the means was large (eta squared 0.346). There was a statistically significant increase own assets from Time 1(M=4.6692, SD=2.5841) to Time 2 (M=7.1654, SD=3.3826), t(132)=�?¢�?�?��?8.219, p<000. The magnitude of the difference in the means was large (eta squared 0.405). According paired t-test, there is significant impact of financial inclusion. This is confirmed by the p-value (p<0.0001) which says that the test is highly significant. Also the profit is positively correlated to both type of saving and type of repayment. An increase the type of saving and type of repayment will also increase the net profit. When the distance is lower, clients are matures enough and improve gender equity, those contribute to increase the net profit to 32.5%, 23.7%, 22.4%, 22.5% and 26.5% unit respectively. It has been confirmed that the financial inclusion influences the positive change of welfare conditions of MFIs clients.