Marital Status

The results in Table 4.1 indicate that 48.3% were married; 29.2% single; 15% widowed and 7.5%
divorced. These findings indicate that those who were married highlighted one of the reasons for
applying for loans as the economic hardships facing teachers because of little income they receive as to
serve as a supplement, while those who were single, widowed and divorced provided reasons such as
easy of access and a thirst for development as among the reasons which necessitated teachers to apply
for loans.

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ABSTRACT

Microfinance in terms of personal loan is a veritable tool of mitigating the effects of poverty among
vulnerable groups and enhancing the level of income of the beneficiaries. Interest rates could range
from 12 to 30%, while the service charges and prepayment penalty being very high. However, Mvomero
district primary school teachers have emerged to access personal loans as to boost their lives regardless
of these challenges. The general objective of the study was to assess the impact of personal loans to
primary school teachers in Mvomero district. Case study research design was utilized in the
methodology. A sample size of 120 respondents was involved. The data collected were analysed and
processed by SPSS computer software through the utilization of descriptive statistics where;
frequencies, percentages and tables were run. The findings from the study indicated that, 82% of
respondents affirmed the easy of access to personal loan and 85% applied for loans in order to improve
their well being by raising income through buying and selling food crops available in their areas as
among the reasons to apply for loans. However, 80% of the respondents utilized loans to buy/build
modern houses and agricultural land and 83% utilized loans to buy home accessories. Yet, 80% of the
respondents reported the presence of psychological discomfort as some teachers could not receive
payments at the end of the month, 82% pointed out the dishonest behaviour as teachers accessed
personal loans from more than one financial institution rendering them not fulfilling their
responsibilities and 85% reported the lack of knowledge to utilize well the loan as planned which
resulted into miseries in the time of repayment. The improvement of primary school teachers’ well
being in Mvomero district council necessitated them to apply for loans from financial institutions in
order to supplement what they get at the end of the month which is little. The research adds to the
argument for enhancing primary school teachers’ income and ensuring that interest rates charged are
minimized in order to improve their well being.