The Effect of Attitudes Towards Money on Over-Indebtedness Among Microfinance Institutions’ Customers in Tanzania

IF 2.8 3区社会学 Q1 SOCIAL SCIENCES, INTERDISCIPLINARY Applied Research in Quality of Life Pub Date : 2024-03-02 DOI:10.1007/s11482-024-10294-0

Pendo Shukrani Kasoga, Amani Gration Tegambwage

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Abstract

Microfinance institutions (MFIs) are believed to be the best source of finance for lifting the poor from poverty. However, the vast majority of MFIs’ customers in the world appear to be over-indebted. This study investigates the effect of the four attitudes towards money (FAM), namely security, love, freedom, and power, on over-indebtedness among MFIs customers in Tanzania. This relationship has not been investigated in previous studies. The study used an analytical cross-sectional design involving a survey of 428 MFI customers using a semi-structured questionnaire. Structural equation modeling (SEM) was employed for data analysis. The findings show that power (β = 0.432, p = 0.000), love (β = 0.114, p = 0.004), and freedom (β = 0.101, p = 0.02) significantly and positively affect over-indebtedness, while security (β = -0.243, p = 0.003) negatively and significantly affects over-indebtedness. This study provides an alternative way for MFIs to reduce over-indebtedness by focusing on borrowers’ attitudes towards money. This will, in turn, enhance loan repayment rates, sustainability of MFIs, poverty reduction and quality of life among MFI customers.

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对待金钱的态度对坦桑尼亚小额信贷机构客户过度负债的影响

小额信贷机构（MFIs）被认为是帮助穷人摆脱贫困的最佳资金来源。然而，世界上绝大多数小额金融机构的客户似乎都负债累累。本研究调查了坦桑尼亚小额金融机构客户对金钱的四种态度（即安全、爱、自由和权力）对过度负债的影响。以往的研究尚未调查过这种关系。本研究采用分析性横截面设计，使用半结构化问卷对 428 名小额金融机构客户进行了调查。数据分析采用了结构方程模型（SEM）。研究结果表明，权力（β = 0.432，p = 0.000）、爱（β = 0.114，p = 0.004）和自由（β = 0.101，p = 0.02）显著正向影响过度负债，而安全感（β = -0.243，p = 0.003）显著负向影响过度负债。本研究为小额贷款机构提供了另一种方法，即通过关注借款人对金钱的态度来减少过度负债。这反过来将提高小额贷款机构客户的贷款偿还率、可持续性、减贫和生活质量。

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来源期刊

Applied Research in Quality of Life SOCIAL SCIENCES, INTERDISCIPLINARY-

CiteScore

6.40

自引率

11.80%

发文量

期刊介绍： The aim of this journal is to publish conceptual, methodological and empirical papers dealing with quality-of-life studies in the applied areas of the natural and social sciences. As the official journal of the ISQOLS, it is designed to attract papers that have direct implications for, or impact on practical applications of research on the quality-of-life. We welcome papers crafted from interdisciplinary, inter-professional and international perspectives. This research should guide decision making in a variety of professions, industries, nonprofit, and government sectors, including healthcare, travel and tourism, marketing, corporate management, community planning, social work, public administration, and human resource management. The goal is to help decision makers apply performance measures and outcome assessment techniques based on concepts such as well-being, human satisfaction, human development, happiness, wellness and quality-of-life. The Editorial Review Board is divided into specific sections indicating the broad scope of practice covered by the journal. The section editors are distinguished scholars from many countries across the globe.