Microfinance Institutions (MFIs) opt to give loans to women and their cooperatives because they are trustworthy in loan repayments compared to men, enabling them to do business better, according to Vision Finance Company.
Bright Batamuliza, the Marketing and Special Projects Manager at Vision Microfinance revealed that with their increasing responsibilities in their families, women have exhibited a culture of trustworthy and diversification of doing multi businesses to raise enough income.
Vision Finance Company is MFI, which provides financial and non-financial services to the economically productive poor Rwandans especially women.
“Women are trustworthy clients; they know how to use the loans effectively by investing in many businesses. When they are in cooperatives the trust is much stronger that you don’t get worried of defaulters,” she told Business Times.
She also noted that women are attracting MFIs to engage in rural areas, especially in agriculture through provision of group loans, which have indicated gloss loan returns.
With voluntary savings and loan project, she said, financial inclusion for all is being realised, especially in rural areas which have been discriminated by banks
According to Batamuliza, MFIs in the country must be gender sensitive if they are to play their role of promoting financial inclusion.
“There is need to ensure all MFIs in Rwanda are gender sensitive in all their operations, if we empower women economically we would have empowered the country.”