The survey aims to measure the characteristics of the households and their capacity to service their hire purchase debt. Hire purchase is an arrangement for buying consumer goods by making an initial down payment (deposit) and paying the balance plus interest in regular instalments. Thus, the buyer pays for the goods while using it. To assess the capacity of households to service their debt obligations, the survey uses the debt service ratio. The ratio may affect the amount of hire purchase a store is willing to grant to a customer.
The information is gathered from a sample of stores offering hire purchase. This survey is part of a series of surveys which includes a survey for banks, Savings and Credit Cooperative Societies (SACCOS) and another for micro lenders. It is expected that the findings of these surveys will help to determine the extent of vulnerability of the financial system to the household sector, and guide in the development and implementation of the financial sector policies.
For Any Questions, Please Contact
Mr. Mogakolodi Mado
Research and Financial Stability Department
Bank of Botswana
Private Bag 154
Gaborone
Telephone: 360-6227
Facsimile: 390-9016
E-mail: madom@bob.bw