Samenvatting

The study was conducted on Vision Finance a microfinance institution of World Vision in Rwanda. The major research question focussed on determining the factors that have contributed default on loans disbursed to PLWHA clients by Vision Finance. Results show that chronic illness and death disrupt businesses, resulting in higher rates of default when clients are too ill to work, caring for ill family members or death. In such a situation, loans have been diverted to urgent needs of PLWHA, affecting their capacity to meet loan repayment requirements. The findings of the study reveals further that lack of initial loan to fund the start-up activities is affecting the real loan investment value. This is coupled by the loan size disbursed which was considered too small by clients to continue working and compete for business in Kigali city. The study findings have important policy and programmatic implications. To improve on loan repayment, the study argues for new innovations by Vision finance rather than developing new products because it is a lower cost option both for the PLWHA clients and Vision Finance. Such innovations should be to put more attention on how to manage risks, extend the training to another member of a family, promote easily accessible savings services, and look into the possibility of introducing a health insurance reduces. One initial loan is also vital to fund the start-up activities.