Abstract

Liberalization in the finance industry in Kenya has led to increased access to credit facilities to Kenyan employees. Primary school teachers are among the beneficiaries. The objectives of this study were to: evaluate the effects of school fees loans on household financial health of primary school teachers in Emining division, assess the effects of home improvement loans on household financial health of primary school teachers in Emining division, examine the effects of emergency loans on household financial health of primary school teachers in Emining division and establish the effects of development loans on household financial health of primary school teachers in Emining division. The study used descriptive research design. Purposive sampling was used to collect data from 165 respondents, 5 teachers from each of the thirty three primary schools, in Emining Division, Baringo. Biographic data on the respondents was analyzed using descriptive statistics such as percentages. Primary data for this study was collected using structured questionnaire. The questionnaire was self-administered. Regression was conducted to test the effect of the various independent variables pooled together on the dependent variable. Two tail t-test and ANOVA test was used to determine the degree of significance of the relationship. The data analyzed was presented in form of tables. Relationships between unsecured personal loans and household financial health of primary school teachers in Emining division was determined at alpha level of p<0.05. Results of the study showed that there is statistical significant relationship between unsecured personal loans and household financial health. Findings of the study also revealed that there is a strong positive relationship between unsecured personal loans and household financial health with a significance value of p= 0.000. Therefore the study concluded that there is strong positive statistical significant relationship between unsecured personal loans and household financial health of primary school teachers in Emining Division, Baringo County, Kenya.

Highlights

  • The field of personal or household finance is better reflected in recent years in several research studies

  • The study used multiple regressions model to establish the relationship between school fees loans, home improvement loans, emergency loans and development loans on the household financial health of primary school teachers in Emining Division, Baringo County, Kenya

  • Unsecured personal loans were studied in terms of school fees loans, home improvement loans, Emergency loans and development loans

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Summary

Introduction

The field of personal or household finance is better reflected in recent years in several research studies. Secured loan is granted to individuals, provided that they deposit some form of security, such as titles, log books or share certificates, [9] This means that a credit facility is fully secured where collateral used to secure the facility has a value that is sufficient to cover the carrying amount of the loan [9]. The relative ease and speed at which unsecured personal loans can be obtained have led to increasing number of applications, making it an area of interest in the study of personal finance. This project represents an attempt to establish the effects of unsecured personal loans on household financial health of primary school teachers in Emining Division, Baringo County, Kenya

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