Interest rate model for short-term consumer credit in Zambia.
| dc.contributor.author | Chikweti, Henry Lukama | |
| dc.date.accessioned | 2024-09-04T07:21:05Z | |
| dc.date.available | 2024-09-04T07:21:05Z | |
| dc.date.issued | 2024 | |
| dc.description | Thesis of Doctor of Philosophy in Business and Management in Finance. | |
| dc.description.abstract | In a bid to change the principal design of short term consumer credit pricing to address the adverse effects of high interest rates while promoting the positive attributes that continued to drive demand, this concurrent mixed methods study weaves together a multidisciplinary theoretical Interest Rate Model which addresses the asymmetry of information problem as the major cost driver. The study focuses on establishing the suitability, acceptability and feasibility of the aforementioned theoretical model considering that previous studies have not satisfactorily addressed the high cost nature of short term consumer credit such as payday loans. Previous studies have either only highlighted the matter or proposed rigid regulatory measures which lenders and borrowers conspire to avoid, suggesting inappropriate suitability, acceptability and feasibility considerations with regards to key stakeholders. The study using the Detailed Action Research Model and a population of more than eight thousand (8000) consumers, employers and merchants as key stakeholders conducted hypothesis testing based on the suppositions developed from the personal reputation conceptual framework and short term consumer credit literature. A sample size of 367 was gotten based on a 50% response distribution. Content analysis based on meaning units from in-depth interviews were used for the qualitative part. Analysis was conducted using Google Forms Analytics, Advanced Microsoft Excel Statistics Analysis Package (AMESAP) and N vivo. The hypothesis tests amongst individual consumers was about 87.5% on the suitability centric hypothesis and 100% on both acceptability and feasibility centric hypothesis. The semantic and thematic analysis from in-depth interviews with more than 40 merchants and employers as key stakeholders indicated an average 80% suitability and acceptability, and up to 90% for feasibility. The results suggest that the theoretical model would be suitable, acceptable and feasible. Therefore, the study advances a way to address the adverse effects on society of high cost short term consumer credit such as perpetual household financial distress, poor productivity from a financially stressed workforce for employers and liquidity constraints for merchant. | |
| dc.identifier.uri | https://dspace.unza.zm/handle/123456789/8865 | |
| dc.language.iso | en | |
| dc.publisher | The University of Zambia | |
| dc.title | Interest rate model for short-term consumer credit in Zambia. | |
| dc.type | Thesis |