LOAN ASSOCIATIONS IN POVERTY REDUCTION IN CASE OF ARORESAWOREDA, EAST SIDAMA ZONE,SIDAMA REGION,ETHIOPIA.

Abstract

Poverty is the main challenge and the fundamental issues of economic development in Ethiopia. To alleviate the problem of the country, Saving and loan association have a significant contribution to have the lively hoods of many people through the provision of financial and supporting services to the poor people participate in the social, economic and political activities of the societies. The study focus on role of saving and loan association in poverty reduction. Data collected by using both primary and secondary sources of data. The data was collected from the total of 93 respondent through questionnaires. The study indicated that the income, saving and loan levels of the majority of the respondents have increased after memberships of the institutions. Encouraging result has also been shown in the enhancement of the women's decision making with respect to the capacity to work on their own and improve their lives. Even though saving and credit institution (SMFI) has vital role on the economic poverty, illiteracy, high pupation growth and low level of women participation, but this are major problems in the study area. Besides to in inefficient amount of fund and unfair decision of management in the institutions are also the major problems. Finally, based the finding of the study important recommendation such as expanding adult education, family planning improving women participation in area and providing sufficient amount of saving and credit to member as well as introducing good management system in the institution are made.