Abstract:
The study focuses on challenges facing women entrepreneurs in accessing loans from microfinance institutions was conducted in Dar es salaam. The objective of the study were; to identify barriers facing women entrepreneurs in securing loans from microfinance institutions; to identify different types of risks considered by lenders in financing women owned investments in Tanzania; to assess challenges facing
women entrepreneurs.
The study population was FINCA women entrepreneurs who manage business, sample of 120 respondents was used. Data collection methods and instruments used were questionnaires, interview guide, documentary review was used. The study found that majority of the respondents (51.67%) identified that high interest rate is the strong barrier in securing loans from microfinance institutions, also it found that majority of the respondents (50%) identified the institutions consider failure to repay loans, moreover it found that found that majority of the respondents (60%) identified high interest rate is the challenge for women entrepreneurs.
The study concludes that; the barrier facing women entrepreneurs in securing loans from microfinance institutions is high interest rate it also conclude that failure to repay loan is one of the types of risks considered by lenders in financing women owned investments in Tanzania; more over the study conclude that high interest rate and uses of loans for domestic purposes are among the challenges facing women entrepreneurs in repaying loans. The study recommends that the efforts of Tanzanian
The recommends that Microfinance Institutions should be streamlined to meet the set standard, including review of their policies to enable them provide maximum amount of loans to women entrepreneurs to reflect the market demands.
