Abstract:
This paper set out to investigate the impact of credit offered by financial institutions on social
economic development of its beneficiaries from 2016-2020. General objective was to assess the
impact of credit offered on socio-economic development while specific objectives were to analyze
status of loans management to provide recommendations based on the findings.The research
results revealed that credit management is effective where by total loans offered has a positive
growth, trend from 2016-2020 has been increased its credits where from 2016-2017 increment of
credit was 22% in 2018 was 20% and 19% in 2019. This increase of loan granted by resulted
from strong management of loan. At the end of 2019 shows how the credit amount progressed
from 2016 to 2019 the amount has raised step by step at the beginning, offered Rfw 385,824,570
to Rwf 678,005,885 from 2016 up to 2019, the progression in four years raised roughly 2.5
times. Whereas nonperforming loans at was the ratio were good during our period of study 2016
to 2019, the normal ratio of NBR required to banks should not exceed In 2016 the ratio increase
to 4.5% and 5.6% in 2017 also increased up to 4.9% in 2018 and 5.7% in 2019 which is better
compare to the standard of National Bank of Rwanda does not exceed 7%.The research findings
on impact of credits to the socio-economic development was analysed by using T-test analysis
whereby respondents’ response were valued at likely score of the results shows that balance diet:
by testing hypothesis the the p-value from tailed sample mean and two tail has been used, degree
of freedom (df)=94, and p-value(P)=1.98 and 1.66 ~two tail, one tail. The student statistical
table that significant level is above 0.05 (p≥0.05).thus implies that there is statistical difference
between two sample means. Income of respondents: by testing hypothesis the the p-value from
tailed sample mean and two tail has been used, degree of freedom (df)=94, and pvalue(P)=1.985 for two tail. The student statistical table that significant level is above 0.05
(p≥0.05).thus implies that there is statistical difference between two sample means. This implies
that there is change of social economic status of beneficiaries.
