Clients’ Satisfaction Towards Services of the Non-deposit Taking Microfinance Institution in Phongsaly Province, Lao PDR

Abstract

Non-deposit Taking Microfinance Institution of Phongsaly provides 5-6 years term loan service for citizen in order to provide satisfaction services to their clients.  The objectives of this study were 1) To study operations of Non-deposit Taking Microfinance Institution of Phongsaly 2) To study clients’ satisfaction factors to services of the Non-deposit Taking Microfinance Institution of Phongsaly and 3) To study problems and obstacles of Non-deposit Taking Microfinance Institution of Phongsaly. The samples of the study were 273 peoples of clients of Non-deposit Taking Microfinance Institution of Phongsaly. Data were collected through the use of questionnaires.  The statistics applied in this research were frequency, percentage, arithmetic mean, maximum, minimum, standard deviation and Pearson’s product moment correlation coefficient.  The result showed that Non-deposit Taking Micro Finance Institution of Phongsaly provided the loan for poor people to engage in activities that generate income for the family, with a maximum loan of 120,000 bath.  The result showed that the clients were extremely satisfied with services, place, employee, process and physical evidence but satisfied with price and promotion.  The result showed that clients’ satisfaction factors significantly correlated to services of the Non-deposit Taking Microfinance Institution at 0.05 level were age, number of loan, repay loan and access to information of loan.  The problems and obstacles of clients are narrow space of parking places, employee's lack of knowledge of academic institutions, lack of clients visits and lack of publicity given to the clients.  The suggestion from this research should provide financial institution literacy training to academic staff such as investment consulting clients, financial planning and procurement markets and reduced business risk etc.