Vulnerability of old age pensioners to micro-lending schemes : the case of Mlungisi location in Lukhanji municipality in Queenstown

Abstract

The study investigated the vulnerability of old age pensioners from micro lending schemes, a case study of Mlungisi location in Queenstown. A qualitative approach was employed in this study, which was carried out among 20 participants, 10 old age pensioners, which comprises of both male and female from Mlungisi Location, 5 Micro lenders from the same area and 5 government service practitioners from Queenstown. Non-probability sampling methods and purposive sampling techniques were employed to select the sample. The data was collected by means of one-to-one in-depth interviews and a once-off focus group discussion.The findings of the study revealed that most of the 100% old age pensioners are customers of micro-lending schemes: only 30 percent made use of cash loans when they were employed and after retirement they make use of extra financial support from their employed children, unemployment fund and old age pension grant. The study found out that some of the old age participants go to micro lenders voluntarily and it is their lifestyle to make use of micro lenders.