Empirical Evidence Impact of Interest Rate on Loan Repayment of Microfinancial Institution in Tanzania

Abstract

Microfinance nowadays is about drawing the benefits of modern entrepreneurship downward to those with low incomes relatively than endorse alternatives to free enterprise; “…it is a component of the post-Washington Consensus [30]” also not a substitute to the prevailing attitude. We adopted descriptive assessment techniques, the data were collected through interviewing or administering a questionnaire to a sample of 400 respondents, and analyzed by using SPSS software. There was strong negative correlation between multiple loans and positive corelation between business capacity and extent of higher interest rates charged. The study recommended that the business owner should focus on the level of the business capacity with loan proposed to be taken and make the comparisons of the daily business revenues operation and not the capital of the business initiatives. Keywords: