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dc.contributor.authorOgutu, Benard Ouma
dc.contributor.authorAluoch, Moses Odhiambo
dc.date.accessioned2023-09-06T09:22:51Z
dc.date.available2023-09-06T09:22:51Z
dc.date.issued2023
dc.identifier.citationOgutu, B. O. Digital Lending Policies And The Uptake Of Loans By Small-Scale Businesses In Nairobi City County Kenya.en_US
dc.identifier.issn2394-4404
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/26902
dc.descriptionarticleen_US
dc.description.abstractThis study aimed at establishing how digital lending policies impact on the rate at which small scale-businesses in Nairobi utilized digital loans to meet their business needs. Specific objectives for this study included how loan limits, rate of interest, speed of access, repayment period, and credit worthiness requirements by digital lenders affect the rate at which small-scale businesses seek loans from traditional sources. The credit rationing, rational choice and Keynes’ liquidity preference theoretical models, as well as, empirical literature provided insights for developing conceptual framework and result analysis. Correlational design allowed for determination of the connection between the various digital lending policies and the indicators of the loan uptake. The target population was all the 309,696 registered small-scale businesses operating in Nairobi while stratified sampling technique helped to recruit 304 to participate in answering the questionnaires. SPSS software was applied in analysing the data. A linear regression model was used to establish how the independent variable (loan limits, rate of interest, speed of access, repayment period, credit worthiness) relates with the dependent variable (rate at which the mall scale businesses borrow loans). Content validity and peer debriefing ensured the validity of the findings of the pilot study which involved 32 respondents. While test-retest and Cronbach alpha test helped to improve the study’s reliability. Linearity, normality, multicollinearity and heteroscedasticity tests were first administered. It was found that the digital lending policies have positive impacts on the digital loan uptake among the small-scale businesses with the repayment period having the greatest effects. The findings indicate that rate of interest, speed of access and repayment period have significant positive effect with the uptake of loans by small-scale businesses, while creditworthiness has significant negative effect with the uptake of loans by small-scale businesses. Loan limits however has insignificant effect negative effective with the uptake of loans by small-scale businesses. The study further indicates that the small scale businesses would have recorded greater financial performance if the lenders adjusted the repayment periods in response to their liquidity needs. Consequently, the small businesses should collaborate with the digital lending platforms in addressing the borrowing policies that still limit optimization of the mutual benefits. Future researchers should examine whether the introduction of Hustlers Fund would solve the market gaps currently facing the mall scale businesses.en_US
dc.language.isoenen_US
dc.publisherIJIRASen_US
dc.subjectLoan Limitsen_US
dc.subjectRate of Interesten_US
dc.subjectSpeed of Accessen_US
dc.subjectRepayment Perioden_US
dc.subjectCredit Worthinessen_US
dc.subjectRate of Uptake of Digital Loansen_US
dc.titleDigital Lending Policies and the Uptake of Loans by Small-Scale Businesses in Nairobi City County Kenyaen_US
dc.typeArticleen_US


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