The Attitude of Bahraini Consumers Towards Loans

Abstract

ABSTRACT : This is a research project on attitudes toward Consumer Loans which have been increasing dramatically in Bahrain over the past fifteen years (more than 240%). The objective of this research was to study Bahrainis' attitude towards loans and to find areas for improvement. With this aim in mind, a questionnaire was circulated to one hundred consumers in order to seek their opinions and understand their attitude toward loans. Of the sample approached, ninety- one consumers responded. The results overwhelmingly indicate that respondents demonstrated a high level of awareness of loan facilities and interest charges. The common view of respondents was that consumer loans placed a burden on consumer income, restricted freedom and that loans were not being used rationally. The majority of respondents (86.81%) have a loan and 53.2% of these hold more than one loan. Younger and married consumers were seen as the major holders of loans. Loan amounts taken by female and'or younger respondents were found to be lower than those taken by male and'or older respondents. In light of the findings of this study, several recommendations are made to improve loan policies.