Borrowing among household head in rural areas of Uganda

Abstract

Borrowing levels is important to be known by the government and other financial institutions for proper planning. It is also important for the government to estimate the starndard of living of the people in an area depending on the rate of borrowing, its also used to estimate the money in circulation in an economy. The objective of the study was to assess the socio-demographic, agriculture and economic factors that affect borrowing among people in rural areas of Uganda who are household head and were avariable at time of interview. The study utilized secondary data of fincope-2018-SAVING.csv. A multiple logistic regression model was used to determine the average level of borrowing people in the rural areas of Uganda. The results show that the factors that significantly affected borrowing were, education levels where by people who completed P7 are less likely to borrow compared to those that never attended school by 2.68 times, saving type was also significantly where by people who saves in the bank are 1.99 times less likely to borrow and people who saves in the saving group/village savings and loan associations are 4.19 times less likely to borrow than those who saves at home. The results also shows that age is also significantly affect borrowing where by people who aged between 56 to 75 are likely to borrow by 0.57 times than those whose who aged 15 to 35 years. The study recommend the government that should involve in planning for the citizen in times of older age through National social security fund (NSSF) and other institutions this is because the older people are likely to borrow than the young this can be due to limited saving during the working