Abstract
Although micro lending can provide some benefits to the low income socioeconomic grouping, it often results in over-indebtedness for many families. The focus of this study was on the factors contributing to indebtedness of public servants of Fransfontein Settlement in the Kunene region. The study objectives were to determine decisions for loan sizes that they acquire; assessment of the levels of indebtedness; identification of the impact of micro lending on public servant’s consumption habits and an investigation whether participation in microfinance programs significantly reduces household vulnerability to poverty. A quantitative approach was employed in this study, using 89 participants who were randomly selected.
The study revealed that indebtedness is mostly caused by the inability to save which is normally is caused by an overstretched budget due to the number of family members resident in the home. The other causes of indebtedness were associated with borrowers servicing more than one loan and the interest implications.
The implications from the findings is that the government and the central bank must address the issue of indebtedness because its effects can negatively impact national livelihood, education and living standards of those residing in remote areas..
Keywords: Micro lending, over-indebtedness, poverty alleviation
MBARANDONGA, E (2021). Factors Contributing To Indebtedness Of Public Servants In Rural Communities Through Micro-Lending: Case Study Of Fransfontein Settlement, Kunene Region. Afribary. Retrieved from https://afribary.com/works/factors-contributing-to-indebtedness-of-public-servants-in-rural-communities-through-micro-lending-case-study-of-fransfontein-settlement-kunene-region
MBARANDONGA, ERICH "Factors Contributing To Indebtedness Of Public Servants In Rural Communities Through Micro-Lending: Case Study Of Fransfontein Settlement, Kunene Region" Afribary. Afribary, 27 Apr. 2021, https://afribary.com/works/factors-contributing-to-indebtedness-of-public-servants-in-rural-communities-through-micro-lending-case-study-of-fransfontein-settlement-kunene-region. Accessed 22 Nov. 2024.
MBARANDONGA, ERICH . "Factors Contributing To Indebtedness Of Public Servants In Rural Communities Through Micro-Lending: Case Study Of Fransfontein Settlement, Kunene Region". Afribary, Afribary, 27 Apr. 2021. Web. 22 Nov. 2024. < https://afribary.com/works/factors-contributing-to-indebtedness-of-public-servants-in-rural-communities-through-micro-lending-case-study-of-fransfontein-settlement-kunene-region >.
MBARANDONGA, ERICH . "Factors Contributing To Indebtedness Of Public Servants In Rural Communities Through Micro-Lending: Case Study Of Fransfontein Settlement, Kunene Region" Afribary (2021). Accessed November 22, 2024. https://afribary.com/works/factors-contributing-to-indebtedness-of-public-servants-in-rural-communities-through-micro-lending-case-study-of-fransfontein-settlement-kunene-region