Determinants of Online Loan Services Among Microentrepreneurs in Tagbina, Surigao Del Sur, Philippines

Abstract

The growing reliance on online loan services as an alternative source of credit has increased the need to understand the factors influencing their adoption among microentrepreneurs, particularly in rural areas with limited access to formal financial institutions. This study examined the determinants of online loan service adoption among microentrepreneurs in Tagbina, Surigao del Sur. Specifically, it assessed the respondents’ demographic profile, level of online loan service availment, technological, organizational, and environmental determinants, significant differences across profile variables, key predictors of adoption, and the development of a policy framework.
A quantitative descriptive-correlational research design was employed involving 298 microentrepreneurs in Tagbina, Surigao del Sur. Data were gathered using a structured survey questionnaire and analyzed using descriptive and inferential statistical tools. Results revealed that the overall level of online loan service availment was low despite technological, organizational, and environmental determinants being perceived as influential. Among the determinants, compatibility, financial resources, and perceived usefulness emerged as significant predictors of adoption. Significant differences in availment were found according to sex and employment status, whereas age showed no significant influence. Based on these findings, a Digital Financial Inclusion Enhancement Framework was proposed to improve platform accessibility, strengthen digital and financial literacy, enhance consumer protection, and reinforce institutional support mechanisms. The framework aims to promote responsible online loan utilization and advance digital financial inclusion among microentrepreneurs in the municipality.