Title: An Exploration of Microfinance and their Effect on Borrowers' Financial Well-Being in the Rural Areas of Sta. Ana, Pampanga
Authors: Crizel S. Gonzales, Laiza Mae R. Muldong, Andrei P. Dimaculangan, Alan Y. Cabaluna, Christine J. Concepcion
Volume: 9
Issue: 6
Pages: 56-70
Publication Date: 2025/06/28
Abstract:
This study aimed to determine the effects of microfinance to the financial well-being of borrowers' in rural areas of Sta. Ana, Pampanga. This study also placed emphasis on exploring the variables regarding the perceptions of the borrowers in microfinance policies and practices. This study employs a quantitative method to effectively measure data, and a descriptive-correlational research design to thoroughly explain the variables and samples in exploring the relationship between microfinance usage and borrowers' financial well-being among 248 borrowers' in the rural areas of Sta. Ana, Pampanga. The respondents were chosen through stratified random sampling and convenience sampling. Statistical methods such as frequency and percentage distribution, Likert scale analysis, and regression analysis were also employed in this study. A data matrix was also utilized in organizing and presenting the results of the study. Based on the results of the study, it has been proven and tested that the demographic profile which includes, age, source of income, monthly income, and frequency of borrowing, perception of the borrowers towards micro financing policy and practices significantly affecting their usage of microfinancing. The researchers have concluded that the null hypothesis was rejected, and there is strong evidence to go against the null. Some recommendations were crafted for the further growth of knowledge and for improvement which includes improvement of policy makers, improving policy and practices of microfinance, and highlighting the importance of perception of borrowers'.