Factors affecting household access to credit access in Swaziland
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The focus of this study was on determinants of household access to credit in Swaziland. The study aimed at establishing factors affecting household access to credit access using logit model. The specific objectives guided were to determine the effect of gender on access to credit, to ascertain the impact of employment on access to credit, to establish the impact of age on access to credit and to find the relationship between marital status and access to credit. After reviewing the relevant literature on households and access to credit at both the micro and macro levels, it outli nes the research design for a mi cro level study on the factors affecting household access to credit access in Swaziland. The results were drawn from a sample size of 281,979 households. A logit model was adopted in order to analyze the probability of success in relation to the probability of failing since the study assumed that there are no clear characteristics which give one an automatic passage to access credit. It was found that being male and increase in age increase the probability of failure to access credit. Conversely, being employed and being married reduces the probability of failure to access credit. Therefore, gender, employment status, age and marital status significa ntly affect access to credit in Swaziland. Women are encouraged to apply for loans since being male increases the probability of being rejected in favor of female. Since age increases the probability of being refused to access a loan, household heads are encouraged to apply for loans when they are still young. It was recommende d that more employment opportunities should be created in order to increase chances of accessing credit. In the same vein, since being married reduces the chances being refused to access credit, married people are encouraged to apply for credit.
- Department of Economics