FINANCIAL PREPAREDNESS AND LOAN REPAYMENT AMONG CREDIT BENEFICIARIES FROM LENDING FINANCIAL INSTITUTIONS IN KENYA
Date
2021-11-11Author
Yego, Philip Kipkorir
Kibirango, Moses M.
Ong’eta, Jackson Oyaro
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Show full item recordAbstract
Borrowers benefit from various loans offered by different lending institutions. However,
repaying the credit has been a challenge for some credit beneficiaries. The study aimed at
examining the relationship between financial preparedness and loan repayment among credit
beneficiaries from lending financial institutions in Kenya. The study used secondary data, the
2019 Fin access Kenya Household Survey data. The relevant observations used in the study had
4760 respondents. The data was analyzed using SPSS 25. The study's correlation between the
independent and dependent variables was investigated using descriptive statistics. The Chi-
Square Tests were done to determine the significance of the association. The outcomes of the
study demonstrated that financial preparedness is highly linked to loan payback, leading to the
conclusion that financial preparedness has an impact on loan repayment. The findings therefore
advise the household group to adopt proper financial preparedness such as putting money aside
in case of emergencies that can be used in the event of a crisis, planning and budgeting to ensure
proper use and good investment of the available resources, while avoiding risky activities such
as gambling. Furthermore, the findings encourage lenders to provide and also promote
educational information to their clients and potential clients on financial preparedness.
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- School of Business [12]