The contributions and challenges of credit unions in Ghana: a case study of selected credit unions in Ho

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The main objective of this study is to examine the financial challenges facing members of Credit Unions and the efforts being made to improve the quality of life of members. The study examined the financial benefits and facilities available to Credit Union members and assessed the impact the scheme was making on the lives of members. One hundred and twenty questionnaires were administered to selected members of four Credit Unions in the Ho Municipality. An analysis of the data revealed that members of the Credit Unions faced certain financial challenges like school fees, medical expenses, funeral expenses and acquisition of means of transport. It was also found out that Credit Union annual interest rates were a little higher than those charged by the banks. Nevertheless the scheme assisted members significantly in overcoming most of the financial challenges facing them. This helped in improving the quality of life of the members. Management Staff of the Credit Unions were found to lack the needed professional competence and expertise for managing the scheme. The study recommends that interest rates of Credit Unions should be reduced and the competence of management staff of the scheme should be upgraded in risk and investment management to make the scheme more sustainable.
A Thesis presented to the Institute Of Distance Learning, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfillment of the requirements for the award of the Commonwealth Executive Masters In Business Administration (CEMBA) Degree In Corporate Finance)