Abstract
Credit facilities include both secured and unsecured loans. For employees, unsecured personal loans have become more popular due to the relative ease and speed at which they can be obtained. The study focused on three areas namely: 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 obtain a sample of 165 respondents, 5 teachers from each of the thirty-three primary schools, in Emining Division, Baringo. A questionnaire was used to collect primary data from the respondent. Correlation analysis was conducted to test the study hypotheses. Results of the study showed that there is a statistical significant positive relationship between unsecured personal loans and household financial health. In particular, there is a statistical positive association between school fees loans, home loans, emergency loans, development loans and household financial of primary school teachers. The study concludes that unsecured loans contributes to the wellbeing of primary teachers.
Highlights
In recent years, retail banking has increasingly gained popularity in Kenya due to various changes in the market especially the inclusion of unsecured loans that were previously a preserve of the Saccos (PWC on Unsecured Loans in Retail Banking, 2007)
The demand for unsecured personal loans is seen in the increasing number of applications that have been made by consumers
Unsecured personal loans have represented an attractive market opportunity for credit providers who have actively pursued a lending growth strategy in this product, as a result of the margins that can be made in the current market (World Bank Survey on Unsecured Credit in the Mortgage Market, 2012)
Summary
Retail banking has increasingly gained popularity in Kenya due to various changes in the market especially the inclusion of unsecured loans that were previously a preserve of the Saccos (PWC on Unsecured Loans in Retail Banking, 2007). Lending is one of the main activities of commercial banks in Kenya and other parts of the world This is evidenced by the volume of loans that constitute banks assets and the annual substantial increase in the amount of credit granted to borrowers in the private and public sectors of the economy. The demand for unsecured personal loans is seen in the increasing number of applications that have been made by consumers This is a product that credit providers have focused on in meeting the demand for credit. Unsecured personal loans have represented an attractive market opportunity for credit providers who have actively pursued a lending growth strategy in this product, as a result of the margins that can be made in the current market (World Bank Survey on Unsecured Credit in the Mortgage Market, 2012)
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