Financial Planning Behaviour and Loan Dependency among Newly Appointed Government Employees in Uttar Pradesh

Abstract

Purpose: Financial planning is very important for ensuring financial stability as well as minimizing the dependence on loans, especially in the initial years of their job. Financial planning becomes imperative when government employees newly join their service as there are many financial obligations that they have to fulfil. The main objective of this research study is to evaluate the financial planning behaviour of newly appointed government employees of Uttar Pradesh and its impact on loan dependency.

Methodology: In the analysis of the study, quantitative, descriptive and analytical research approach has been used. The primary data was collected from 178 newly recruited government employees in the state of Uttar Pradesh by making use of a structured questionnaire based on the five-point Likert scale. Convenience sampling technique was used for selecting the respondents for the study. The gathered data were analysed using IBM SPSS.

Findings: The study results show that demographic factors like gender, age, education, and monthly income have a major impact on financial planning behaviour. The study further shows that there is a significant inverse relationship between financial planning behaviour and reliance on loans, which means that financially well-planned employees tend to rely less on loans.

Originality/Value: This study has provided empirical evidence on the financial planning behaviour and reliance on borrowing for the new recruits of government sector in Uttar Pradesh. This can prove useful in the design of financial literacy programs by the government departments, policy makers, and financial institutions.