The effect of personal bank loans on the livelihood of teachers in selected public schools in Lusaka.

This study was conducted in 15 selected schools in Lusaka. The objective of this research was to establish the effect of personal bank loans on the livelihood of teachers in selected public schools in Lusaka. This study investigated the reasons behind teachers' use of personal bank loans in Lusaka, the effectiveness of these loans in meeting their financial needs, and the challenges associated with the loans acquired. A mixed-methods approach was employed, integrating quantitative data from 100 questionnaires and in-depth qualitative insight from 10 interview guides with head teachers and employees from the Credit reference bureau. Convenience sampling was used to select 15 schools in Lusaka.100 Participants were then
sampled using purposive sampling and given questionnaires. This combination allowed for a comprehensive understanding of loan practices and their multifaceted effect on teachers' lives in selected public schools in Lusaka. The study revealed that teachers primarily sought loans due to economic hardships, buying assets such as cars and land, and unexpected financial emergencies. While loans offered a means for essential purchases and temporary financial relief, they often contributed to a cycle of indebtedness and psychological discomfort. Key challenges included high stress levels, reduced net pays, indebtedness, increased divorce and suicide cases. Personal bank loans offered short-term financial solutions for teachers but posed
long-term risks. The conclusions drawn from this study emphasized the need for a holistic approach to addressing teachers' financial vulnerabilities. Providing access to credit alone was insufficient; it must be accompanied by efforts to improve financial literacy, strengthen support systems, and address the root causes of financial instability. This study recommended financial literacy programs, improved teacher compensation, and the development of teacher-specific loan products. Transparent and fair lending practices were also essential to support teachers' financial stability and avoid unsustainable debt burdens.