Financial Wellbeing Among Borrowers of Microfinance Institutions in Digos City
Keywords:
local finance, financial wellbeing, borrowers, microfinance institutions, PhilippinesAbstract
Providing financial services to low-income individuals and small businesses in developing countries, microfinance institutions have a beneficial impact. However, borrowers might confront financial difficulties such as excessive interest rates and fees that may result in over-indebtedness and financial distress. The present study sought to investigate the impact of MFIs on the financial wellbeing of borrowers, surveying 300 randomly selected borrowers in microfinance institutions in Digos City, Philippines. Analysis used mean, analysis of variance (ANOVA) and t-test for independent samples. Results revealed that financial wellbeing analysis showed high freedom from debt, moderate investment and financial discipline, and moderate financial resilience. Overall, financial wellbeing was moderate. Gender and employment status had significant differences, with males and the employed reporting higher levels of financial wellbeing. Building a strong financial foundation through automated savings and investment plans, and empowering borrowers with financial knowledge and creditworthiness is recommended. Future research should include longitudinal studies, explore the impact of financial education, and investigate technology-based solutions for financial access.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Sarah Mae Bilonoac, Bianca Camille Cirunay, Willy John Muit, Freddy Navarro
This work is licensed under a Creative Commons Attribution 4.0 International License.
All articles are published under the terms of the Creative Commons Attribution License (CC BY). This license permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.