Abstract:
Personal loans are the fastest growing products of unsecured credit facilities in spite of high
interest rate, due to smart positioning of the product by financial institutions. Personal loans are
the easy option of people for financial requirements as they do not attract encumbrances and with
a little practical formality to obtain them. The researcher focuses on the current trend of personal
loans and the factors that influence the trend from different perceptions of lenders and
borrowers.The researcher also reviewed that the recent growth in personal loan is healthier in the
banking system and at the same time, the consumers are utilizing it for the right purposes. This
study observed that there is a growth in dispersal of personal loan by commercial banks. The
report provides comprehensive analysis of the trend, information and insight on to the driver
supporting the growth of personal loans in the financial market of Botswana. Each factor that
was considered in setting the trend of growth in personal loans is elaborately scrutinized in both
supply and demand perspective. Commercial banks are taken as population for this study as they
are the major personal loans lenders in Botswana. A random sample method is used to collect
data using questionnaires and interviews with the consumers and the lenders
