This study evaluates the socioeconomic effects of Village Loan Savings Initiatives (VLSA) on rural communities in T/A Chimwala, Malawi. VLSAs are self-managed groups that facilitate savings and small loans to tackle socioeconomic issues. Using both qualitative and quantitative methods, including structured questionnaires and interviews, the research found that VLSAs positively impacted rural households by boosting income, financial stability, and access to education, healthcare, and entrepreneurial opportunities. Despite these benefits, challenges such as high loan interest rates, limited loan amounts, and occasional discrimination in loan distribution were noted. Recommendations include lowering interest rates, offering entrepreneurial training, and enhancing financial service access to improve VLSA effectiveness. The study provides valuable insights for policymakers and rural development practitioners.
">This study evaluates the socioeconomic effects of Village Loan Savings Initiatives (VLSA) on rural communities in T/A Chimwala, Malawi. VLSAs are self-managed groups that facilitate savings and small loans to tackle socioeconomic issues. Using both qualitative and quantitative methods, including structured questionnaires and interviews, the research found that VLSAs positively impacted rural households by boosting income, financial stability, and access to education, healthcare, and entrepreneurial opportunities. Despite these benefits, challenges such as high loan interest rates, limited loan amounts, and occasional discrimination in loan distribution were noted. Recommendations include lowering interest rates, offering entrepreneurial training, and enhancing financial service access to improve VLSA effectiveness. The study provides valuable insights for policymakers and rural development practitioners.
">This study evaluates the socioeconomic effects of Village Loan Savings Initiatives (VLSA) on rural communities in T/A Chimwala, Malawi. VLSAs are self-managed groups that facilitate savings and small loans to tackle socioeconomic issues. Using both qualitative and quantitative methods, including structured questionnaires and interviews, the research found that VLSAs positively impacted rural households by boosting income, financial stability, and access to education, healthcare, and entrepreneurial opportunities. Despite these benefits, challenges such as high loan interest rates, limited loan amounts, and occasional discrimination in loan distribution were noted. Recommendations include lowering interest rates, offering entrepreneurial training, and enhancing financial service access to improve VLSA effectiveness. The study provides valuable insights for policymakers and rural development practitioners.
