Abstract: The provision of credit has increasingly been regarded as an important tool for raising the incomes of rural populations, mainly by mobilizing resources to more productive uses. Credit is the borrowing capacity of an individual or company. This study was intended to assess the lending policies and credit access of formal financial institutions in relation to socio-economic effect to clients in Botolan Zambales, Philippines. Descriptive research design was employed with a quota of Thirty (30) residents in Botolan availing loans using a questionnaire in data gathering. It includes determining the profile variables as well as the lending policies, access to credit, and the socio-economic effect to the client. It was found out that the respondents perceived “very strongly agree” on perception about credit and perceived “strongly agree on types and purpose of the loan, respectively. Perceived “very strongly agree” on the socio-economic effect to the client. It was also perceived to have a significant relationship between the lending policies of formal financial institutions and the clients’ socio-economic aspect. Therefore, proper implementation of policies can help an organization to succeed; customers should be treated with respect because they the blood of every business.
Keywords: lending policies, socio-economic, formal financial institutions, descriptive research, Zambales Philippines.
Title: Lending Policies and Credit Access in Relation to Perceived Socio-Economic Effect to Clients of Formal Financial Institutions
Author: Fershie D. Yap
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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