The Role Of Addis Credit And Saving Institution In Urban Poverty Alleviation Case Study Of Lideta Sub City Credit Scheme

Micro finance can be defined as a term. that refers to the provision of financial services to low incomernClients; financial services include savings and credit, insurance, payments services. The idea 'was initiated byrn:Muhaminad 'Yonus in (Bangladesh. Starting from the establishment of micro finance during 1970s, it hasrnshown a tremendous growth and expansion throughout the world. Now it is being practiced in manyrndeveloping countries to address the low income society and thereby to improve their live hood.rnIn Ethiopia micro credit programs were introduced as components of NGO. in the 1980’s and the(NBE) National Bank of Ethiopia )productionNo.40/1996 helped to create many micro finance institution.rn. 'There is a wider agreement about the goal of micro finance, i.e. to improve the welfare of the poorrnthrough enabling them to participate in income generating activities, empowering women, create employmentrnopportunity etc. But this wide agreement about the goals has not led to wide agreement how best to achievernthat objective in practice. Hence, the study is interested to explore the practical impact of micro financernprograms on urban Poverty alleviation. To examine the Success of micro finance in attaining the cited positivernimpacts with respect to the urban poor, the extent and success of out reaching the targeted urban poor:rnMethodologically the study uses both primary and secondary data. 'The primary data are collected fromrnclients of Addis Credit and Saving Institution by taking Lideta Sub City as a case study. Out of the totalrnborrowers in the Sub City, 125 sampled respondents (10% of total clients) are interviewed on. 'various issues.rn'The findings show that there is a positive and promising outcome in areas of credit operations (types, terms, conditions)rn saving mobilization (type and magnitude), credit utilization of the borrowers, giving priority tornWomen, changing the living standard, loan size on the existing activity participating in the program. On thernother hand, the program has also its short comings in areas such as out reaching the targeted urban poor,rnpracticing group leading methodology leading interest rate , creating employment opportunity . and training and rnpromotional to encourage the urban poor to participate in the program.rn,

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