For Immediate Release
(Newswire.net — July 29, 2013) Dhoby Ghaut, Singapore — Research was done by Credit Xtra to study the consumer behaviour towards the choice made by consumers to obtain personal loans from private money lenders instead of banks in Singapore. The study was done based on a questionaire survey and a focus group discussion. A total number of 100 respondents particiapated in the questionaire survey and 10 respondents were chosen from the 100 respondents to participate in the focus group discussion.
The 100 respondents were chosen based on random convenience sampling , where the customers were requested to complete the questionaire survey irregardless of their financial abilities and background. Main hypotheses were developed for the research study, where the study aims to find out if interest rates, convenience and repayment schemes will influence the choice of consumers towards personal loans.
Survey results show that the convenience of obtaining a personal loan positively influence the consumer choices of personal loans while the personal loan interest rates and repayment schemes does not have a significant influence on the consumer choices. 64.7% of the respondents answered that convenience plays a large influence on their choices when obtaining a personal loan. 43.1% and 30.8% of the respondents find that the personal loan interest rates and repayment schemes of the personal loans is not a significant factor in their consideration.
In the focus group discussion, respondents further elaborated that in the midst of a financial situation, convenience is usually a factor that they place as priority and thus, private money lenders may appear to be a better choice due to the long waiting time of banks loans. One of the respondents revealed that although bank loans may have a better and safer repayment scheme, the desperate calls for the other alternative – private loan companies. Futhermore, it was revealed that the interest rates across the money lenders in Singapore, inclusive of banks, are almost similar and hence, the interest rates makes no difference to the consumers when obtaining a personal loan.
This study by Credit Xtra shows that the convenience of personal loan packages is the main reason on why consumers chose to obtain personal loans from private personal loan moneylender over banks despite of the increasing money scams and negative stereotype of private loan companies. A stereotype is just a label and reality shows otherwise.