The Impact of Loan Sharking on Victims Financial and Social lives: An online Survey of Victims Experiences in a Ghanaian context

Authors

DOI:

https://doi.org/10.21831/jss.v20i1.73495

Keywords:

Loan sharks, Loan apps, Victims, Borrowing, Perpetrators

Abstract

This study intends to contribute to the body of knowledge on loan sharking in Ghana and to provide policymakers, regulators, financial institutions, and community organisations with useful information by examining the impact of loan sharking on victims financial and social lives. The study utilised a survey research design to collect data from loan app victims. Snow ball sampling technique was used to collect data from loan app victims who responded to the survey. A total of 82 victims responded to the survey. A structured questionnaire was developed using Google Forms to collect data from participants. A descriptive statistical analysis was conducted to summarise the data collected from the survey. The study revealed that loan apps fulfil diverse needs, including providing quick and accessible funds, meeting basic necessities, circumventing social challenges, responding to familial rejection, capitalising on the influence of loan agents, facilitating entrepreneurial endeavours, and satisfying individual curiosity. The study further revealed a cycle of financial challenges, including difficulties in saving money, repeated borrowing, and significant financial burdens, suggesting a profound negative impact on participants' financial well-being. Furthermore, participants reported severe social consequences, including disgrace, social stigma, and damaged relationships.

Author Biography

Richard Oti, University of Education, Winneba

Richard Oti is an associate lecturer and a researcher with the University of Education, Winneba (CODeL). He is also a tutor and the head of department for Social Studies at Fountainhead Christian School. He holds a Bachelor of Art Degree (Social Studies Education) and Master of Philosophy (Social Studies) from the University of Education, Winneba-Ghana. His research interests are in the areas of Gender (Education), Child rights, Conflict and Social Studies Education. He is also open to interdisciplinary studies but more specifically within the Social Sciences.

References

Aryeetey, E., Armah, B. K., Osei-Assibey, E., & Osei, V. (2020). Determinants of informal borrowing in Ghana. Journal of African Business, 21(4), 548-570.

Akpabli, D. E., Owusu, E. O., & Asiamah, P. (2018). The Menace of Loan Sharks in the Greater Accra Region of Ghana: A Narrative Inquiry. Journal of Research in Humanities and Social Science, 6(1), 124-134.

Bank of Ghana (2022). Notice to all Unlicenced Financial Institutions and Genreal Public. Notice No. BG/Gov/Sec/2022/10. Unlicenced Entities Engaged in Lending.

Cyber Security Authority (2023). Cyber Bullying by Digital Lending Mobile Application Owners. https://www.csa.gov.gh/cert-gh-alert10.php

Global Initiative Against Transnational Organized Crime (2020). Reducing Vulnerability to Loan Sharking in Serbia. https://riskbulletins.globalinitiative.net/see-obs-009/06-reducing-vulnerability-to-loan-sharking-in-serbia.html

Mayer, R. (2012)."Loan Sharks, Interest-Rate Caps, and Deregulation." Washington and Lee Law Review 69(2).

Saunders, P (2019). Loan sharking: changing patterns in, and challenging perceptions of, an abuse of deprivation, Journal of Public Health, Volume 43, Issue 1, March 2021, Pages e62–e68, https://doi.org/10.1093/pubmed/fdz090.

Rolf Nugent, The Loan-Shark Problem, 8 Law and Contemporary Problems 3-13 (Winter 1941). Available at: https://scholarship.law.duke.edu/lcp/vol8/iss1/2

Tutica, Janory. (2023). Effects of Loan-Sharking on Philippines' Microenterprises.

Yankey, B.M (2016). Fincancial Literacy Among Public Sector Workers in the Capecoast Metropolis.https://ir.ucc.edu.gh/xmlui/bitstream/handle/123456789/3180/Matthew%20Beila%20Yankey.pdf?sequence=1&isAllowed=y

Downloads

Published

2024-08-19

Issue

Vol. 20 No. 1 (2024): Journal of Social Studies (JSS)

Section

Articles

License

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).