DOI: 10.36347/sjahss.2015.v03i07.004

Pages: 1174-1180

The study investigated the impact of Group formation criteria of money lending associations on poverty alleviation in Rubirizi District.The study was conducted using questionnaires and interviews as instruments of the study to answer research questions on formation criteria of group lending associations on poverty alleviation in Rubirizi district, Western uganda.. The data was analysed using descriptive statistical techniques and presented using frequencies and percentage, pie charts and bar graphs.The study findings revealed that Joint Group Lending associations are formed among members of equal or same risk interests. It further revealed that saving and credit registered groups are common in Rubirizi district with average members of 25-30 men and women from the same village or parish for easy loan management. It was also revealed that loan is given to those who have applied for it and have gone through a training of loan management.It was further found out that most people in Joint Groups have benefited by improving on their Household wellbeing in terms of access to food , medical care, education to their children, safe water, better housing conditions, family assets and family comfort. The study recommended that Micro credit lending institutions should penetrate and reach out to even the poorest people in most rural and urban areas. Also it is recommended that members should first be trained on loan management before accessing the loan. Lastly, the research recommended that loans should be given to those who have existing or running business to be supplemented by the loans.