TABLE OF CONTENTS
APPROVAL ................................................................................................................................... ii
DEDICATION ............................................................................................................................... iii
ACKNOWLEDGEMENT ............................................................................................................. .iv
TABLE OF CONTENTS ......................................................................................................... i ...... v
LIST OF ACRONYMS (ABBREVIATIONS) ............................................................................... x
ABSTRACT ................................................................................................................................... xi
CHAPTER ONE .............................................................................................................................. I
INTRODUCTION ........................................................................................................................... 1
1.0 Introduction ............................................................................................................................ I
1.1 Background to the Study ........................................................................................................ I
1.1.1 Historical Perspective ......................................................................................................... 1
1.1.2 Theoretical Perspective ....................................................................................................... 1
1.1.3 Conceptual Perspective ....................................................................................................... 2
1.1.4 Contextual Perspective ........................................................................................................ 3
1.2 Statement of the Problem ....................................................................................................... 4
1.4 Specific Objectives of the study ........................................................................................... .4
1.5 Research Questions ................................................................................................................ 5
1.6 Scope of the study .................................................................................................................. 5
1.6.1 Geographical scope: ............................................................................................................ 5
1.6.2 Content scope: ..................................................................................................................... 6
1.6.3 Time scope: ......................................................................................................................... 6
I. 7 Significance of the study ........................................................................................................ 6
1.8 The Conceptual Framework ................................................................................................... ?
...................................................................................................................................................... 7
CHAPTER TWO ............................................................................................................................. 8
LITERATURE REVIEW ................................................................................................................ 8
V
2.0 Introduction ............................................................................................................................ 8
2.1 The concept of the interest rates ............................................................................................ 8
2.1.1 Types of the interest. ........................................................................................................... 9
2.1.2 Factors that detennine changes in the general level of interest rates ................................ 11
2.2 Overview of Uganda's Financial Sector .............................................................................. 11
2.3 Effects of rising and falling interest rates ............................................................................ 11
2.4 Effect of interest rates on loan repayment ........................................................................... 12
2.5 Factors that influence interest rate in commercial banks in Uganda ................................... 12
Expected levels ofinflation .................................................................................................... 12
Monetary policy and intervention of government ..................................................................... 14
General economic conditions ................................................................................................. 14
2.6 Impact of interest rates on borrowing in centenary rural development bank, Arua branch.16
Higher interest rates have various economic effects .............................................................. 16
2. 7 Review of Empirical Studies .............................................................................................. 18
2.8 Summary of Literature Review ............................................................................................ 19
2.9 Research Gap ....................................................................................................................... 20
CHAPTER THREE ....................................................................................................................... 21
RESEARCH METHODOLOGY .................................................................................................. 21
3.1 Introduction .......................................................................................................................... 21
3.2 Research design ................................................................................................................... 21
3.3 Population of the study ........................................................................................................ 21
3 .4 Sample size and technique ................................................................................................... 21
3.5Data collection method ......................................................................................................... 22
3.6Measurement of Reliability and validity ........................................................................... , .... 22
3.6.1 Validity ............................................................................................................................. 22
3.6.2 Reliability .......................................................................................................................... 23
3.7 Data analysis ........................................................................................................................ 23
3.8 Ethical consideration ............................................................................................................ 23
3.9 Constraints faced during the Research ................................................................................. 24
CHAPTER FOUR ......................................................................................................................... 25
VI
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS ............................ 25
4.0 Introduction .......................................................................................................................... 25
4.1 Sample Characteristics ......................................................................................................... 25
CHAPTER FIVE ........................................................................................................................... 32
SUMMARY, CONCLUSION AND RECOMMENDATIONS ................................................... 32
5.1 Summary .......................................................................................................................... '. ... 32
5.2 Major Findings ..................................................................................................................... 33
5.3 Recomrnendations ................................................................................................................ 34
5.4 Areas for Further Research .................................................................................................. 35
REFERENCES .............................................................................................................................. 36
APPENDICES ............................................................................................................................... 40
APPENDEX 1: Questionnaire ....................................................................................................... 40
APPENDEX 2: Questionnaire ....................................................................................................... 43
