Microfinance Services as a Key Driver of Financial Inclusion in Rwanda. A Case Study of Umurenge Saccos in Rulindo District in Rwanda from 2009-2013

The present research is entitled Microfinance as a key factor for financial inclusion, a case study of Umurenge Sacco of Rulindo District in Northern Province. The main objective of the study is to examine the effects of microfinance on financial inclusion. The objectives of the study were to identify the role played by Umurenge SACCOs of Rulindo District in promoting financial inclusion, to identify the relationship between physical location of SACCOs and financial accessibility, to assess the effect of financial literacy on financial accessibility, to examine the role of financial services accessibility and different channels used to offer financial services to the population. The research was conducted in SACCOs located in Rulindo District. To examine the effect of Umurenge SACCOs on financial inclusion, the researcher used descriptive statistics to analyze the data collected from the field using frequencies, tables and figures to show the relationship between the independent and dependent variables. The target population of the study constituted of all 17 Umurenge SACCOs in Rulindo District. The 4 Umurenge SACCOs which comprised the sample size were based on the Umurenge SACCOs that have registered the highest percentage of adult people in their respective interval range. The research instruments used are questionnaires to be administered to 64 employees and members of Umurenge SACCO. Literature was reviewed to enable the researcher to explicitly understand microfinance and financial inclusion; and to understand the theoretical links between microfinance and financial inclusion. The results from this study will help the decision makers to know the benefit and impact of Microfinance on financial inclusion in general and the impact of Umurenge Sacco on financial inclusion in particular. The research recommendations will help the management of Umurenge SACCOs to improve the quality of services to their clients in order to satisfy them and to provide a greater contribution to their clients and to their development. The study results also will contribute to the academic literature on the links between microfinance and financial inclusion.