Using TPB Model to Explore Drivers of & Barriers to Intention for Consumer Loan from Official Financial Institutions

PHAM HONG HOA, HO CHI DZUNG

Abstract


Consumer loans are generally understood as small loans for individual clients for personal and household consumption. This type of credit is perceived as bringing practical benefits to both the people and the economy. However, many people are still reluctant to borrow from official financial institutions (from hereafter referred as OFIs), but rather keep borrowing habits of relatives or informal ones, such as pawnshops, or illegal credit. This study was conducted to understand attitudes, drivers of borrowing intentions and barriers to borrow from OFIs of Vietnamese people.
This research is based on the theoretical framework of the Theory of Planned Behaviour, which identifies the initial basements about motivational or impeding elements of borrowing from the OFIs. Then, we interviewed some of the consumers to supplement and clarify the factors included in the final survey. Factor analysis and linear regression model’s method has been used for primary data processing. The results show that the most important elements that motivate the borrowing behaviour from the OFIs include lending policies and the proximity/friendliness of providers; the most obstructive factor is the knowledge of the borrowers about the financial products. In addition, it is showed that the viewpoint of people's borrowing has shifted, from an inherent perspective "using by one shelf’s ability" to "borrowing to spend first and then paying later". Based on the results of the study, several policies and strategic implications for managers and financial institutions have been proposed.

Keywords: Institutions, Official Financial, and Consumer Loan.

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Department of Public Administration
KHON KAEN UNIVERSITY.
Room A5 Floor 7th Rattanapittaya Building
Faculty of Humanities and Social Sciences,
Khon Kaen University, Khon Kaen, Thailand

Email:sataro@kku.ac.th

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