Abstract:
The topic chosen for the research is the study of factors affecting the potential for personal loans in Islamabad. I chose this topic keeping in mind the fast pace of life in the twenty first century and the toll on the breadwinners of any household. Prices of consumer goods and luxury item necessary for making a comfortable living are souring by the day. While the earning capacity of individuals is increasing at a very disheartening rate. Almost every household is in need of extra financing at some point in a year. Instead of looking up to fellow individuals to solve ones financial needs people are now going to such banks, which offer products like personal loans. Through this study, I have tried to analyze the factors that could be prompting people to take personal loans, and how other factors are responsible for the growth in demand of such loans. The geographical area covered in my research is Islamabad. Two questionnaires are devised to gather sufficient data so as to reach a conclusion. The first questionnaire is aimed at various bank employees selected randomly. The questionnaire analyses the factors, which affect the growth of personal loans from a bankers' point of view. The second questionnaire is for the general public to assess whether there is a demand for such a product from the customers or not. Analyzing the two questionnaires, it was found that there is significant demand for personal loans in Islamabad . This demand is not hampered by difference m Income levels of customers wanting personal loans. Inflation is increasing the demand of this financial product. And so are the declining trend of interest rates.
