Predicting likelihood for loan default among bank borrowers

Poverty is a threat to the world. In its extreme form at any part of the world, it will make endanger rest of the world. In fact, it is the source of crime and the worst form of violence. The poor people do not commit any crime but they get punishment out of being born as a poor that is not controll...

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Main Authors:	Aslam, Muhammad, T., Senthil Kumar, Sorooshian, Shahryar
Format:	Article
Language:	English
Published:	Sciedu Press 2020
Subjects:	HG Finance QA Mathematics
Online Access:	http://umpir.ump.edu.my/id/eprint/28040/ http://umpir.ump.edu.my/id/eprint/28040/ http://umpir.ump.edu.my/id/eprint/28040/ http://umpir.ump.edu.my/id/eprint/28040/1/Predicting%20likelihood%20for%20loan%20default%20among%20bank%20borrowers.pdf

id	ump-28040
recordtype	eprints
spelling	ump-280402020-03-12T02:57:44Z http://umpir.ump.edu.my/id/eprint/28040/ Predicting likelihood for loan default among bank borrowers Aslam, Muhammad T., Senthil Kumar Sorooshian, Shahryar HG Finance QA Mathematics Poverty is a threat to the world. In its extreme form at any part of the world, it will make endanger rest of the world. In fact, it is the source of crime and the worst form of violence. The poor people do not commit any crime but they get punishment out of being born as a poor that is not controllable in their hand. Microfinance has been designed to eliminate poverty and help marginal and poor people through small income generating activities. The borrowers need capital to materialize their dream, may be in a small amount and microfinance can play important role in this scenario. Through microfinance, small entrepreneurs may acquire necessary inputs to start their business. Both local governments and international agencies are trying to eliminate poverty through microfinance programs, services and guidelines. With this concept, Microfinance has been hosted primarily in Bangladesh. Grameen Bank (GB) has been serving large number of people below poverty level in Bangladesh. However, impact of microfinance is still questionable in several studies. Microfinance used properly and returned back to the lender with stipulated amount and time shows its working effectively for poverty alleviation. Otherwise, there must be loan default and the whole system may be in question. We survey with questionnaire to find out factors contributing to loan default among GB borrowers using binomial logistic regression. The results showed that some factors were crucial for loan default and should be treated properly at the start of lending. Sciedu Press 2020 Article PeerReviewed pdf en cc_by_4 http://umpir.ump.edu.my/id/eprint/28040/1/Predicting%20likelihood%20for%20loan%20default%20among%20bank%20borrowers.pdf Aslam, Muhammad and T., Senthil Kumar and Sorooshian, Shahryar (2020) Predicting likelihood for loan default among bank borrowers. International Journal of Financial Research, 11 (1). pp. 318-328. ISSN 1923-4023 (print); 1923-4031 (online) https://doi.org/10.5430/ijfr.v11n1p318 https://doi.org/10.5430/ijfr.v11n1p318
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Malaysia Pahang
building	UMP Institutional Repository
collection	Online Access
language	English
topic	HG Finance QA Mathematics
spellingShingle	HG Finance QA Mathematics Aslam, Muhammad T., Senthil Kumar Sorooshian, Shahryar Predicting likelihood for loan default among bank borrowers
description	Poverty is a threat to the world. In its extreme form at any part of the world, it will make endanger rest of the world. In fact, it is the source of crime and the worst form of violence. The poor people do not commit any crime but they get punishment out of being born as a poor that is not controllable in their hand. Microfinance has been designed to eliminate poverty and help marginal and poor people through small income generating activities. The borrowers need capital to materialize their dream, may be in a small amount and microfinance can play important role in this scenario. Through microfinance, small entrepreneurs may acquire necessary inputs to start their business. Both local governments and international agencies are trying to eliminate poverty through microfinance programs, services and guidelines. With this concept, Microfinance has been hosted primarily in Bangladesh. Grameen Bank (GB) has been serving large number of people below poverty level in Bangladesh. However, impact of microfinance is still questionable in several studies. Microfinance used properly and returned back to the lender with stipulated amount and time shows its working effectively for poverty alleviation. Otherwise, there must be loan default and the whole system may be in question. We survey with questionnaire to find out factors contributing to loan default among GB borrowers using binomial logistic regression. The results showed that some factors were crucial for loan default and should be treated properly at the start of lending.
format	Article
author	Aslam, Muhammad T., Senthil Kumar Sorooshian, Shahryar
author_facet	Aslam, Muhammad T., Senthil Kumar Sorooshian, Shahryar
author_sort	Aslam, Muhammad
title	Predicting likelihood for loan default among bank borrowers
title_short	Predicting likelihood for loan default among bank borrowers
title_full	Predicting likelihood for loan default among bank borrowers
title_fullStr	Predicting likelihood for loan default among bank borrowers
title_full_unstemmed	Predicting likelihood for loan default among bank borrowers
title_sort	predicting likelihood for loan default among bank borrowers
publisher	Sciedu Press
publishDate	2020
url	http://umpir.ump.edu.my/id/eprint/28040/ http://umpir.ump.edu.my/id/eprint/28040/ http://umpir.ump.edu.my/id/eprint/28040/ http://umpir.ump.edu.my/id/eprint/28040/1/Predicting%20likelihood%20for%20loan%20default%20among%20bank%20borrowers.pdf
first_indexed	2023-09-18T22:43:59Z
last_indexed	2023-09-18T22:43:59Z
_version_	1777417102069596160

Predicting likelihood for loan default among bank borrowers

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