Impact Of Village Savings And Loans Association On People’s Welfare Case Study Lapul Subcounty, Pader District Uganda

ABSTRACT

The study was conducted in Lapul sub county, pader district Northern Uganda under the topic

“impact of village savings and loans association on the rural household welfare. The research

considered a population of 80 people out of which a sample size of 70 respondents was equally

selected from the total population to give them an equal opportunity to participate in the study.

The study had three major objectives which were; to evaluate the contribution of VSLA on

household’s education, measure the impact of VSLA on rural household assets, and to assess the

attribute of VSLA on nutrition and health.The data collection was through self- administered

questionnaires and interview and equal chances was given to all the members of the SACCOs to

participate in the impact study. With the help of simple random sampling techniques statistical

package used for analysis was SPSS and the results were presented in form of tables, pie charts

and graphs.The key findings of the study are as follow: the average monthly income of the old

VSLA participants is statistically significantly different from and larger than those of members

who are not operating the cycle, further evidence from the research showed that there is a

positive and significant relationship between participation in VSLAs and household asset

accumulation. Considering education, the mean education expenditure of VSLA participants was

found to be drastically different from and larger than those of the non VSLA participants. The

results also show that participation in VSLAs significantly reduces the probability of having

school drop — out children in the family.

A VSLA is a time-bound accumulating savings and credit association (ASCA). In it, 15 to 30

people save regularly and borrow from the group fund. Loans are repaid with interest, and have a

period usually between one and three months. On a date chosen by the members, usually after

about a year, all the financial assets are divided among the members in proportion to each one’s

savings. This payout is called the “action audit”. The groups normally re-form immediately and start a new cycle of savings and lending.