Global Research Society Publisher

The Role of Bank Loan in Promoting Business Performance in Ruhango Sector


Sr No: 2
Page No: 11-17
Language: English
Licence: CC BY-NC 4.0
Authors: Mutarambirwa Emmanuel*, Mugwaneza Laurien, Uwingabiye Alice, Twagirumukiza Gratien, Habiyambere Ernest.
Published Date: 2026-05-18
Abstract:
The primary role of banks is to provide financial services by accepting deposits from public and extending loans to business firms and individuals. The aim of the study was to determine the roles of bank loan in the promotion of business performance in Rwanda especially in Ruhango sector, to determine the role of banks in raising capital for entrepreneurs in Ruhango sector; To analyze the credit management for various businesses in the Ruhango sector; To determine the increase in self-employed income as a result of the increase in credit in Ruhango sector. The data was collected from 40 respondents in Ruhango entrepreneurs. During the study, questions and sampling techniques were employed. The data from the respondents were analyzed and interpreted. The results revealed that bank loan contribute to the promotion of business performance in Ruhango sector. The most of respondents (52.1%) agree that their income increased due to the loan acquired and these form the highest percentage of the respondents. In few words Banks proves to be important to its customers especially those who have access to loan. Bank loan contribute on the promotion of business performance in order to alleviate poverty in Rwanda. After analyzing and interpreted the results, the researcher made conclusion saying that there is strong impact of bank loans on the promotion of business performance in Ruhango sector; recommendations saying that banks should facilitate access to credit to small entrepreneurs as are them who have low ability to save sufficient amount of starting and expending their business. The bank should simplify the procedures associated with credit acquisition. In that way farmers and other peoples generating little income can be attracted to borrow and suggested ways that bank can help in the development of Rwanda like implementations of some mechanisms to increase saving mobilization from rural areas.
Keywords: The Role of Bank to people, Loan, Promoting Business Performance, Ruhango Sector.

Journal: GRS Journal of Arts and Educational Sciences
ISSN(Online): 3107-5142
Publisher: GRS Publisher
Frequency: Monthly
Language: English

The Role of Bank Loan in Promoting Business Performance in Ruhango Sector