Factors Affecting Loan Availment among Members in One of the Cooperatives in San Carlos City

Abstract

This study investigates the extent of loan availment among members of a Multi-Purpose Cooperative in San Carlos City, focusing on purpose, process, and accessibility. The research aims to assess financial loan availment concerning demographic factors such as age, sex, civil status, income, educational attainment, length of membership, and occupation. Utilizing a descriptive-comparative research approach with a quantitative design, a valid survey was administered to 231 cooperative members via email and messenger. Data analysis was conducted using Analysis of Variance (ANOVA) and independent sample T-tests, while frequency distribution determined member profiles. Results indicate a high extent of financial loan availment across all purposes and processes, regardless of demographics. However, differences emerged when grouped by age; older members were more likely to avail themselves of loans than younger members. No significant differences were observed between male and female members regarding loan availment. Income levels significantly influenced loan access; members earning below PHP 10,000 were more likely to obtain loans than those with higher incomes. Interestingly, high school graduates showed greater loan availment than those with higher education levels. Additionally, members with 7-9 years of membership had higher loan access due to their longer tenure. Overall, the findings suggest that various demographic factors influence loan availment among cooperative members. The study recommends implementing financial literacy programs to enhance members’ financial management skills.