Browsing by Author "Mushemeza Rebecca"

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    Lending Terms, Information Asymmetry and Credit Accessibility among Microfinance Clients in Kigezi Sub- Region, Western Uganda.
    (Makerere University Business School, 2022-02-14) Mushemeza Rebecca
    This study examines the relationship between lending terms, information asymmetry and credit accessibility among selected MFIs clients in Kigezi sub-region, Uganda. A cross-sectional research design along with a quantitative research approach was used. A sample of 375 MFI clients was selected from 11,492 MFI clients in 79 MFIs. This study used cluster, disproportionate, and simple random sampling to arrive at the sample. Data was obtained using a structured questionnaire, tested for validity using expert judgment and CVI while pretesting and Cronbach Alpha coefficient checked its reliability. SPSS v25 was used to analyze data. This study found a positive relationship between lending terms and credit accessibility; and a positive relationship between information asymmetry and credit accessibility. The study also found that both lending terms and information asymmetry are significant predictors of credit accessibility. Information asymmetry was the better predictor of credit accessibility. This study concludes that offering favourable lending terms and minimizing information asymmetry cannot be taken for granted in enhancing credit accessibility. The study recommends clients to provide quality information when processing credit from microfinance institutions, and increase their responsiveness to providing the information asked for during the loan process to improve credit accessibility. Clients should equally apply for flexible loan types especially group loans. The study theoretically contributes to Pecking Order Theory acknowledging that MFI clients evaluate lending terms before they made a decision to access credit or not. It also endorses the Organizational information processing indicating that the more informed MFIs clients are, the more they will increase desire to access credit.