Regular charity giving behaviour among low-income households in Indonesia

The payday lender comes to the poor or low-income neighbourhood as a "close-friend" or "angel-cover" offering desperately needed unsecured microloans. Since the loan is unsecured, no collateral is required; however, excessive interest rates are charged on the loan, resulting in o...

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Bibliographic Details
Published in:Intellectual discourse 2016-01, Vol.24 (1), p.133
Main Authors: Arsyianti, Laily Dwi, Kassim, Salina
Format: Article
Language:English
Subjects:
Charities
Debt service
Households
Loanwords
Low income groups
Quran
Online Access:Get full text
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Summary:The payday lender comes to the poor or low-income neighbourhood as a "close-friend" or "angel-cover" offering desperately needed unsecured microloans. Since the loan is unsecured, no collateral is required; however, excessive interest rates are charged on the loan, resulting in over-indebtedness of the poor. The low-income households were presumably incapable of giving charity as they are pre-occupied in paying debt. [...]the perception about giving charity by the low-income households also needs to be re-assessed and fully understood in order to build a sustainable charity model for the low-income households.
ISSN:0128-4878