Institutional Environment and Access to Microfinance by Self-employed Women in the Rural Areas of Edo State, Nigeria

Assessing impact of microfinance services on self-employed women
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This study examines the relationship between the institutional environment of microfinance and rural womens access.

The study involved focus group sessions with rural women clients of formal and informal MFIs in Esan Local Government Area of Edo State, Nigeria. Study findings include:

  • Traditional, informal MFIs co-exist with formal MFIs, and remain the only source of funds available to poor women who are unable to access formal MFIs;
  • Rural women find it difficult to borrow from banks because they do not have bank accounts, lack collateral and are ignorant about procedures;
  • While their main source of finance is their contribution from savings/market associations, rural women have also started accessing loans from formal MFIs;
  • Microcredit has had positive influences on their businesses and family life.

Women will be encouraged to open bank accounts if they are assured that their deposits are safe and that they will be able to access loans at reasonable terms. The study recommends that informal MFIs should be registered at the local government level. More microfinance banks should be established in Local Government Areas and should target rural women.

Read the brief here.

About this Publication

By Okojie, C., Monye-Emina, A., Eghafona, K., Osaghae, G. , Ehiakhamen, J.