An Analysis on the Trend of Personal Loans in Commercial Banks of Botswana

Personal loans are the fastest growing products of unsecured credit facilities in spite of high

interest rate, due to smart positioning of the product by financial institutions. Personal loans are

the easy option of people for financial requirements as they do not attract encumbrances and with

a little practical formality to obtain them. The researcher focuses on the current trend of personal

loans and the factors that influence the trend from different perceptions of lenders and

borrowers.The researcher also reviewed that the recent growth in personal loan is healthier in the

banking system and at the same time, the consumers are utilizing it for the right purposes. This

study observed that there is a growth in dispersal of personal loan by commercial banks. The

report provides comprehensive analysis of the trend, information and insight on to the driver

supporting the growth of personal loans in the financial market of Botswana. Each factor that

was considered in setting the trend of growth in personal loans is elaborately scrutinized in both

supply and demand perspective. Commercial banks are taken as population for this study as they

are the major personal loans lenders in Botswana. A random sample method is used to collect

data using questionnaires and interviews with the consumers and the lenders