Profile, Reasons and Consequences of Borrowing from Lending Institutions in Sorsogon City

This study aimed to determine the profile, reasons and consequences of borrowing from lending institutions by the DepEd personnel in Sorsogon City from the fiscal year 2019 to 2021.  The descriptive method was used in the study.  According to Calderon (2008), as cited by Alberto et al (2011), the descriptive method is also known as statistical research, it describes data and characteristics of the population or phenomenon being studied.  This research method is used for frequencies, averages and other statistical calculations.  This study will be used to determine the demographic profile of the DepEd personnel, their reasons for borrowing money and the consequences that they encountered due to borrowing in a lending institution.  A financial literacy seminar will be developed based form the result of the survey.  The main instrument that was used in the study is a survey questionnaire and the data that were obtained were tallied, analyzed and interpreted by the use of appropriate statistical tools and measures. The findings were: There are 85 female and 35 male respondents.  There were 30 respondents who are single, 84 are married, 3 are widowed and there are 3 are separated.  Further, there were 46 school personnel who are in the positions of Teacher I, 18 with Teacher II positions, 45 with Teacher III positions, two of them with Head Teacher, Master Teacher I and master Teacher II positions.  There are 56 among the respondents who stayed in the service from 0-6 years, 30 have stayed 7-12 years, 12 have 13-18 years and 22 are already 19 years and above in the service.  There are 13 school personnel whose salary is 20,000 and below, there are 90 respondents with a salary ranging from 20,000.01 to 30,000.00, there are 11 with 30,000.01 to 40,000.00 and 6 respondents with a salary of 40,000.01 and above.  There are 72 among the personnel who owned their houses, 16 0f them are renting and 32 are residing with their parents. Accordingly, there were 13 personnel who have 1 type of loan, 30 of them had 2 types of loans, 38 have 3 types, and 39 have 4 types and above.  With regards to their performance rating, there were 40 school personnel who got an outstanding performance rating and 80 among them got a very satisfactory rating in the year 2018 to 2019.  In the year 2019-2020, there are 39 school personnel who got an outstanding performance while 81 got a very satisfactory performance.  There are 52 and 68 respectively who got an outstanding and very satisfactory performance in the year 2020-2021. The common reasons for borrowing money from lending institutions are a home improvement or renovation with a weighted mean of 4.53, health, education, investment, recreation, travel and payments for debts with a weighted mean of 3.98, 4.05, 4.28, 3.68, 4.36 and 4.26 respectively. The common consequences of borrowing money from lending institutions are decreased net pay, generating more debts, financial instability and difficulty in monthly loan payments with a weighted mean of 4.41, 4.17, 3.77 and 3.52 respectively.  Although they experienced negative consequences, they were able to support education, health and other financial needs, with a weighted mean of 3.84, through borrowing money. The computed chi-square values on the relationship between the reasons in borrowing money from lending institutions and the profile of the respondents in terms of sex, civil status and positions are 4.11, 7.46 and 12.257 respectively. The computed chi-square values on the relationship between the reasons for borrowing money from lending institutions and the profile of the respondents in terms of length of service, monthly income, number of the family members working, residential type and number of loans are 46.28, 33.88, 38.21, 29.86 and 31.09 accordingly. The computed chi-square values on the relationship between the reasons for borrowing money from lending institutions and the profile of the respondents in terms of civil status, teaching position and number of the family members working, are 18.44, 24.44 and 20.57 respectively. The computed chi-square values of 16.42, 29.80, 28.90, 23.09 and 42.81 on the relationship between the reasons in borrowing money from lending institutions and the profile of the respondents in terms of sex, length of service, monthly income, residential type and a number of loans are 46.28, 33.88, 38.21, 29.86 and 31.09 accordingly.  A financial literacy program can be proposed to guide and protect the school personnel in borrowing money.