Socio Economic Factors Affecting Credit Access and Utilization among SACCO Members in Soroti District, Eastern Uganda

This paper examined the socio economic factors influencing credit utilization among borrowers of rural credit schemes in Soroti district, Uganda. The study used a cross-sectional research design involving both qualitative and quantitative research approaches. Two hundred fifty seven (257) respondents were randomly selected from among thirteen SACCOs. Data were collected on the basis of structured questionnaires and in-depth interviews. Qualitative data were manually analyzed by theme and content. Quantitative data were analyzed using the de-scriptive statistics, t-tests, chi-square test and Logit regression. Results of the t-test indicated that experience in borrowing was significant (P< 0.05) and positively related to credit utilization. Results of the Chi- square test in-dicated that significant factors influencing credit utilization included level of education, main source of income, meeting intended purpose of credit, good planning, saving, and diversification of income sources. Results of the Logit regression indicated that level of education, organization of the farmers, inclusive decision making, farming experience, good planning, diversification of income sources, and source of credit had significant influence on credit utilization. Keywords: Credit Utilization, SACCO, Soroti, Uganda