Microfinance Loan Accessibility and Wealth Creation for Women Entrepreneurs in Kicukiro District, Rwanda
DOI:
https://doi.org/10.47604/ijecon.3835Keywords:
Microfinance, Loan Accessibility, Loan Eligibility, Client-Support Services, Loan Repayment Terms, Wealth CreationAbstract
Purpose: To examine the effect of microfinance loan accessibility on wealth creation for women entrepreneurs in Kicukiro district, Rwanda.
Methodology: A descriptive research design and a mixed-methods approach were utilized. A sample of 96 respondents was drawn from 120 women entrepreneurs and six local leaders using simple random and purposive sampling. Data were collected through questionnaires and interviews, then analyzed using SPSS version 30 through descriptive and inferential statistics, while qualitative data were analyzed thematically from 10 key informants.
Findings: Findings revealed strong positive correlations among all variables (r = .653–.799, p < .001), with loan eligibility criteria showing the strongest relationship with wealth creation (r = .794). Regression analysis showed a high explanatory power (R = .807; R² = .652; F = 57.422, p < .001), indicating that 65.2% of variations in wealth creation were jointly explained by the three predictors. Regression coefficients confirmed significant effects for loan eligibility (β = 0.675, p < .001), repayment flexibility (β = 0.241, p = .007), and client support services (β = 0.232, p = .004). Hypothesis testing led to the rejection of all null hypotheses, establishing that microfinance accessibility dimensions significantly enhance women’s income growth, asset accumulation, and business expansion.
Unique Contribution to Theory, Practice and Policy: The study recommends that microfinance institutions revise collateral policies, strengthen financial literacy and mentorship programs, and align repayment schedules with business cash flow cycles. Policymakers should promote inclusive lending frameworks and guarantee schemes to enhance women’s access to credit. Further research is recommended on digital microfinance platforms, comparative district analyses, and the moderating role of financial literacy on women’s wealth creation.
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Copyright (c) 2026 Theresie Uwiringiyimana, Dr. Osiemo Athanas Kengere, PhD, Hovaire Nsabimana
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