4th African International Conference on Industrial Engineering and Operations Management

Theoretical Aspects of the Short -Term Consumer Credit Interest Rate Model

Henry Lukama Chikweti, Lubinda Haabazoka & Jackson Phiri
Publisher: IEOM Society International
0 Paper Citations
Track: Business Management

The main objective is to explore the short term consumer credit high interest rate problem and the infectiveness of current interventions such as regulation while developing an alternative model. Therefore, the paper develops a theoretical alternative model which addresses the major interest rate cost drivers subject to stakeholder engagement through suitability, acceptability and feasibility assessment. This is because previous studies have arguably unsuccessfully attempted to solve the matter through policy regulation albeit without satisfactory stakeholder engagement hence the shortcomings.  The rationale of the new theoretical Interest Rate Model suggest that the alternative model informed by key stakeholder engagement would be more appropriate to address the adverse effects of high cost short term consumer credit than regulation.

 Key words: Short-term Consumer Credit, High Interest Rates, Policy Regulatory ineffectiveness


Published in: 4th African International Conference on Industrial Engineering and Operations Management, Lusaka, Zambia

Publisher: IEOM Society International
Date of Conference: April 4-6, 2023

ISSN/E-ISSN: 2169-8767