Loan Research Papers - Academia.edu (original) (raw)

Top Papers
Most Cited Papers
Most Downloaded Papers
Newest Papers
People
- by
- •
- Finance, Strategic Management, Risk Management, Credit Risk

National student loan debt has continued to climb trending up despite the decline of other types of consumer debt since the Great Recession. This paper provides an overview of the student loan market and the distribution of individual loan balances and loan performance. The empirical analysis uses a state and time fixed-effect model to examine factors that influence the variation across states in the amount borrowed and delinquencies measured in terms of balance or number of borrowers. The results show that states with higher student loan balances are not necessarily those with poorer loan performance. There are no clear patterns of amount borrowed, but loan performance differs among races and ethnicities. States with a higher percentage of their population with a college degree borrow less and have better loan performance. States with higher average credit scores tend to have lower rates of delinquency. Credit scores are not necessarily related to the amount borrowed because the ma...

- by Wenhua Di
- •
- Economics, Higher Education, Household Finance, Consumer Finance
- by J Glascock
- •
- Business, Applied Mathematics, Loan, Firm Size
- by Reinhard Drifte
- •
- Political Science, China, Loan, Asia Pacific

Access to finance by entrepreneurs is paramount for their business to succeed. The existing microfinance institutions (MFI’s) have tried to bridge the gap of credit accessibility to entrepreneurs but despite this the entrepreneurs have been defaulting on their loans. This study was carried out to analyze the factors influencing loan repayment in micro-finance institutions. The findings will assist the microfinance institutions in coming up with the most appropriate measures to apply in order to eliminate defaults. Descriptive survey was employed with a target population of 39 Loan Officers and 5280 registered MFI clients. A census of 39 loan officers was targeted and a sample size of 360 respondents from registered group members. Stratified proportionate sampling and simple random sampling were employed. Data was collected by use of questionnaires and interviews and analyzed using both descriptive and inferential statistics. The study established that education level, number of dependents, and hobbies were individual characteristics influencing loan repayment. Business characteristics influencing loan repayment were: length of operation, management and type of business. While the lenders characteristics were: groups handled, period taken to qualify new members and the criteria used to evaluate credit worthiness. The study recommends that the government and other stakeholders in the sector should ensure that prospective financial borrowers have access to formal education and training on business management and financing. The MFI’s should reduce the time taken to process a loan application and develop models that are more effective in evaluating credit worthiness of their clients.

- by Dr. Daniel Nderi and +1
- •
- Entrepreneurship, Management, Finance, Accounting

Saving is an essential instrument for capital accumulation and formation which further enhance economic growth and development through investing the saved fund. This study examined the effects of saving and saving habits of individuals on entrepreneurship development in Jalingo metropolis, Taraba State, Nigeria. The objectives of the study were to: examine saving and saving habits of the respondents, assess the effects of saving and saving habit on entrepreneurship development, assess the effects of perceived financial wellbeing on entrepreneurship development. Multi-stage sampling technique was used. Wards were randomly selected from the existing ten wards in Jalingo metropolis.50% of the residential areas in each ward were systematically selected. Then 0.718% of the population in each of the selected residential areas were drawn. There were total of 130 respondents. Data were collected using structured questionnaire on five point Likert scale. The data for the study were analyzed ...

- by Samuel Msheliza
- •
- Business, Entrepreneurship, Development, Wellbeing
- by kshitij shrivastava
- •
- Finance, Accounting, Risk Management, Credit Risk
- by Noyal T Hari
- •
- Finance, Criminal Law, Water, Security

This study examines the impact of financing small scale enterprises on economic growth in Nigeria, using a quarterly time series data from 1992 to 2009. The study combined several econometric estimation techniques. The findings shows that loan to small scale entrepreneurs have a positive impact on the economic performance while interest rate has a negative impact on economic growth. The study thereby concludes that the greatest or worst problem confronting SMEs in Nigeria is managerial capacity. Access to capital or finance is necessary but not a sufficient condition for successful entrepreneurial development.

- by adegbemi B Onakoya
- •
- Development Economics, Microfinance, Nigeria, SMES IN DEVELOPING COUNTRIES

Entrepreneurial and business skills are generally considered key to microbusiness success, hence to Microfinance Institution (MFI) clients' loan repayment as well. However, empirical evidence is largely lacking, and where present, it is inconclusive on the importance of these skills for microfinance success. The present paper uses objective MFI loan repayment data to empirically test whether loan repayment rates positively correlate with self-evaluations on entrepreneurial and business skills of loan clients. A survey was conducted among 235 loan clients of uniCredit — an MFI in Ghana. We establish that MFI clients' self-evaluation of their entrepreneurial and business skills are not related to their loan repayment rates. However, we observe that women repay their loans better than do male microbusiness entrepreneurs, and loan repayment was also better for those entrepreneurs with more than 15 years of business experience.

- by Daniel Agbeko
- •
- Business, Microfinance, Loan, Skills

El Tribunal Supremo publicó el día 11 de septiembre de 2019 la sentencia de la misma fecha que acomodaba al derecho español la STJUE de 26 de marzo de 2019 sobre la misma cuestión y que supone un cambio o adaptación del criterio que se había mantenido en la STS de 23 de diciembre de 2015. En el presente post se recoge una primera aproximación al nuevo criterio jurisprudencial que establece los criterios a seguir para los supuestos de ejecuciones hipotecarias que parten de una cláusula sobre vencimiento anticipado que haya sido o sea declarada nula por abusividad. On September 11, 2019, the Supreme Court of Spain published the ruling of the same date which accommodated the Spanish law of 29 March 2019 on the same issue and which implies a change or adaptation of the criterion which had been maintained in the STS of December 23, 2015. This post contains a first approximation to the new

- by Enrique Sanjuán y Muñoz
- •
- Loan, Mortgage, Sentencias, Vencimiento Anticipado

This work investigated the impact of liquidity management on the profitability of banks in Nigeria. The work is necessitated by the need to find solution to liquidity management problem in Nigerian banking industry. Three banks were randomly selected to represent the entire banking industry in Nigeria. The proxies for liquidity management include cash and short term fund, bank balances and treasury bills and certificates, while profit after tax was the proxy for profitability. Elliot Rothenberg Stock (ERS) stationary test model was used to test the run association of the variables under study while regression analysis was used to test the hypothesis. The result of this study has shown that liquidity management is indeed a crucial problem in the Nigerian banking industry. The study therefore recommends that banks should engage competent and qualified personnel in order to ensure that right decisions are adopted especially with the optimal level of liquidity and still maximize profit.

- by Sunny Ibe
- •
- Management, Business Administration, Finance, Economics

The initiation, funding, servicing and monitoring of loans by financial intermediaries has been done without regard to some critical factors which could have averted the likelihood of default. The study aimed at measuring the extent that owner-specific, borrower-specific, loan and lender-specific characteristics could determine the probability of loan default. The study used logistic regression for 224 business customers of a bank in Ghana from its nation-wide branches. The study found that owner’s extra income (ownership characteristics), multiple borrowing, diversion of loan purpose (borrower characteristics), loan price, loan purpose, loan age, repayment plan (loan characteristics) and underfunding (lender characteristics) significantly determined the probability of business loan default. The overall model predicted up to 78.5% of variations in the likelihood of default. The hierarchy of strong determinants given by their odd ratios were loan purpose (47.9 times), underfunding (1...

- by Ellis K Akwaa-Sekyi
- •
- Business, Loan, Loan Default, Banking and Finance
- by DENNIS K MURIITHI
- •
- Statistics, Loan, Regression, Logistic

The main financial challenge facing small and medium enterprises (SMEs) is access to affordable credit over a reasonable period. Despite the financial reforms aimed at improving SMEs, access to finance to improve their performance and growth, access to finance for SMEs remains a recurrent problem. This is even more pronounced for commercial loan financing and as long as banks apply the same lending
principles to SMEs as to big firms, small businesses will be deprived of key access to finance. The
structure and management of majority of SMEs is less developed with weak internal controls making
the availability of information for risk analysis by the banks and micro-finance lenders inadequate. This
research therefore led to an argument that the inherent weaknesses in the internal control structures of
SMEs deny them access to commercial loan financing. SMEs in Uganda, suffer from constraints that
lower their resilience to risk and prevent them from growing. Findings of the study indicated that the
soundness of the various internal controls was a significant predictor for access to commercial loan
financing. More specifically firms with sound asset control and an independent review stood a better
chance of accessing funding. It was thus recommended that; SMEs work on setting up or improving
their preventive and detective internal controls and risk management systems while ensuring that the
installed systems are appropriate to their size and organizational complexity in order to improve their
chances of accessing the much desired capital.

- by Moses Bukenya
- •
- Accounting, Financial Accounting, Corporate Governance, Banking

The paper subjects the female superiority in loan repayment hypothesis to empirical scrutiny with data from the microfinance industry in Ghana. Using binary logistic regression, our data provide evidence that females are more likely to default on their loans than males which presupposes that males are rather better borrowers. The paper, therefore, submits that the female superiority in loan repayment hypothesis may not be valid in Ghana.

- by Michael Adusei
- •
- Economics, Loan, Advances In Management and Applied Economics
- by Limahl Kasambala
- •
- Agronomy, Microfinance, Agriculture, Banks
- by Noor Firdoos
- •
- Business, Hidden Markov Models, Loan, Loans
- by Nadir Ali Mugheri
- •
- Sociolinguistics, English language, Culture, Pakistan

This paper analyses how non-performing loans (NPLs) of Indian banks behave through the cycle. We find that a one-percentage point increase in loan growth is associated with an increase in NPLs over total advances (NPL ratio) of 4.3 per cent in the long run with the response being higher during expansionary phases. Furthermore, NPL ratios of banks are found to be sensitive to the interest rate environment and the overall growth of the economy. Notwithstanding differences in management and governance structures, there is a procyclical risk-taking response to credit growth in the case of both public and private banks with private banks being more reactive to changes in interest rate and business cycle conditions.

- by Pallavi Chavan
- •
- Business, Social Science Research Network, Loan

- by Professor Samuel Kaku Msheliza
- •
- Business, Entrepreneurship, Development, Wellbeing
- by Mohammad Tahir
- •
- Econometrics, Macroeconomics, Pakistan, Wavelets
- by Peter Akayuure and +1
- •
- Instructional Design, Educational Technology, E-learning, Distance Education

This study examines Non-Performing Loan (NPL) and its effects on the stability of Nigerian banks with national and international operational licenses from 2014:Q2 to 2017:Q2. A "restricted" dynamic GMM is employed to estimate the macroeconomic and bank specific drivers of NPL for each licensed category. Z-Score is constructed to proxy banking stability, and its response to shocks NPLs is examined in a panel vector autoregressive framework. The results reveal that drivers of NPLs vary across the two categories of banks, but, weighted average lending rate is a vital macroeconomic driver of NPLs for both. The results also confirm the moral hazard hypothesis and risk-return tradeoff of efficient market theory. Furthermore, international banks withstand NPLs shocks in the long run, despite temporary flux in the short horizon, while the stability of national banks is susceptible to NPLs shocks in the long run. The study recommends that weighted average lending rate, anchored on ...

- by Victor Atoi
- •
- Business, Financial System, Loan, Non Performing Loan
- by Mustafe Mohamed
- •
- Business, Management, Project Management, Microfinance

The paper focuses on how women fish vendors manage to sustain their small scale business seeking help from available sources. The women fish vendors are offered micro finance support from Self Help Group in Kanyakumari district. The rate of interest is low and the procedure is simple to the semi-literate fish vendors. Self Help Group is a small voluntary association, which forms and guides the members facing similar problem and also same socioeconomic conditions. Supporting financially the women fish vendors it enables the women empowerment. The study area is fishing hamlet Rajakamangalam Thurai. All fish vendors are members of one or more SHGS. All the respondents of the study admit that micro finance makes desirable change in their lives. It projects that micro finance is the major source for sustainability of their business and means for eradicating the poverty of women fish vendors. This paper concludes that most of the sample respondents have been using the loan amount to income generating activities while some fail to develop their business. Therefore they are economically still poor. There is also need for the intervention of experts to provide the awareness for using the loan amount to income generating activities to empower them economically.

- by Research and Statistics Center
- •
- Empowerment, Loan, Awareness, Member
- by Nicolas Tranter
- •
- Phonology, Korean linguistics, Linguistics, Orthography

Online peer-to-peer lending applications have emerged in some recent years in Vietnam, where the consumer lending market is potential for financial companies. This country faces challenges to control the online lending business. As a result, criminals find loopholes in the legal system on this business to commit loan sharks. This article targets to explore the nature of the connection between a loan shark and online peer-to-peer lending applications through interviewing with police officials in their specific operation investigated. The findings highlight a close structure of criminal groups related to loan sharks via this lending platform and a comprehensive profile of borrowers. These findings suggest some recommendations for fighting against this crime effectively in the coming time.

- by Lê Quang Toàn
- •
- Business, Vietnam, Loan, Loan sharks
- by Ibrahim Osman
- •
- Loan
- by SAYUTI ABDULLAHI SHAFII
- •
- Business, Finance, Microfinance, Social Science Research Network
- by Angga Lidiawan
- •
- Mathematics, Econometrics, Statistics, Loan
- by Stephanie L Black
- •
- Business, Ethnic Studies, Economics, Small Business

This chapter examines graduate labor market performance and its implications in the design of a student loan scheme for higher education in Malaysia. The current mortgage-type loan scheme under the National Higher Education Fund Corporation (NHEFC) creates a major problem in terms of loan defaults which contribute to high implicit subsidies and concerns related to the sustainability of this scheme. With high unemployment among fresh graduates and where over-education is found to be prominent among employed graduates, it is likely that the current mortgage-type loan scheme creates a heavy burden on many graduates with relatively low incomes. The important concept relates to what is known as the ‘repayment burden’, the proportion of a debtor’s income that is required to meet repayment obligations. To understand the extent of repayment burdens, age-earnings profiles are estimated for Malaysia and it is found that the earning ability of graduates varies by level and field of study. The current mortgage-type student loans are shown to impose quite high repayment burdens, particularly for graduates in arts and social sciences, with the results helping us to understand the extent of loan defaults. Adjusting the data to include unemployed graduates, which results in a more informed repayment burden calculation, adds very considerably to our assessment of the average repayment difficulties. In assessing the efficacy of the current loan scheme, we compare the implicit subsidies under the current mortgage-type student loans with a proposed (hypothetical) income contingent loan (ICL).

- by RUSSAYANI ISMAIL
- •
- Business, Economics, Loan

The Central bank ofZimbabwe governor in his monetary policy statement of January, 2012 lamentedthat the deterioration in asset quality was of much concern to the monetaryauthorities. As a consequence of this statement this paper sought toinvestigate the adequacy of the sources of information used by Zimbabwean banksto make lending decisions. A qualitative research design was employed to enablethe researcher to analyse the data using SPSS statistical packages. The dataused in the study were collected from small to medium enterprises (SMEs),Commercial banks, and companies. The population sample of the study was 10Commercial banks in Zimbabwe, 50 SMEs from 5 major cities of Zimbabwe and 10companies listed on the stock exchange. The study evaluated the sources ofinformation currently used by banks and came up with the following findings:the majority of financial statements the banks use are not audited and most ofthese unaudited statements are prone to manipulation, the clearance report...

- by Norman Marime
- •
- Business, Economics, Loan, Finance Accounting
- by Olowa Olatomide
- •
- Economics, Development Studies, Machine Learning, Social Science Research Network

- by Buba Musa Pulka
- •
- Business, Entrepreneurship, Development, Wellbeing

The housing deficit in Ghana is an issue of concern for all. This study sought to analyse the determinants of the repayment of mortgage loans in Ghana. The study used both secondary and primary data. The mixed-method approach was used for the study. The data collection instruments were interviews, focus group discussions and questionnaires. The study revealed that socio-demographic characteristics of respondents, sex distribution of respondents, educational level of respondents, marital status of respondents, occupational status of respondents, household size of respondents, the income of respondents are some of the factors that affect the repayment of mortgage loans in Ghana. The study revealed that borrowers who earned higher income had a better repayment performance as compared to low income earning borrowers. In addition, higher household sizes have lower repayment capacity and lower household sizes have higher repayment capacity. The study recommends that the government of Ghan...

- by Justice Agyei Ampofo
- •
- Business, Loan, Finance Accounting

Article covers the issues of research task of banks and authorized government institution interests in manufacturing companies' investment projects congruence elaboration. Authors note that the way to deal with economic growth unsustainability (one of the main problems of modern Russian economic system development)-it is to change economy management model (non-effective raw export model on model of sustainable industrial growth). In turn to perform national economy transformation to sustainable industrial growth model authors develops the financial mechanism of banking sector an9d government collaboration in area of manufacturing industries financing (lending) based on idea of covering interests of all key stakeholders of investment project. Article develops the research task (model) of banks and authorized government institution interests in manufacturing companies' investment projects congruence. The methodological basis of the model is optimization theory. Author also considers factors Vladislava Poletaeva, Denis Perepelitsa, Tat'yana Arhangel'skaya, Il'yas Zaripov and Szabolcs Pásztor http://www.iaeme.com/IJMET/index.asp 1604 editor@iaeme.com faulting research task optimal solving, including the Bank of Russia policy, national social-and-economic policy, economic changes, and analyze main lines of their impact.

- by IAEME Publication
- •
- Interest, Loan, Bank, RESEARCH TASK

This paper analyses the existing modes of financing a university education in Uganda. Different parties, including the state, the student (household), donors, and the institution itself, are financing university education in Uganda. However, students are the primary source of funds for university education. Over the years, the fees charged to university students have been increasing to the extent that they are now becoming unaffordable to many students considering the current average annual household income. While the government is involved in funding university education, the level of involvement is unsatisfactory besides being discriminative. The existing government sponsorship scheme indirectly favours students from affluent families and denies access to poor students. The existing loan scheme focuses only on STEM courses and ignores students whose potentials are in the arts sector. However, in doing all this, the state uses taxpayers' money. Indirectly, poor households finan...

- by Tibelius Amutuhaire
- •
- Higher Education, Financing Higher Education, Loan

In running business, the owners of Micro, Small, and Medium Enterprises (MSME) have main weaknesses, in which they do not conduct good accounting system or financial records, thus creating difficulties in developing analysis for future business planning. Most of MSME owners run their business by relying on instincts, while business analysis and accounting system are necessary when they apply for bank loan.The aim of this study is to reveal some variables of MSME that become the determinants of their bank loans approval. These variables are: Business Age since Establishment, Total Assets Turnover, Owner’s Total Assets, Credit Duration, Owner’s Education Level, Good Relationship with the Bank, Collateral Amount, and Loan Repayment Criteria. The samples of this study were taken from entrepreneurs selling clothes and apparels in Tanah Abang by conducting direct interview and fulfilling the questionnaire. The questionnaire consists of three major parts, which are business owner’s profile...

- by margarita ekadjaja
- •
- Business, Finance, Loan
- by Daniel Nderi
- •
- Business, Entrepreneurship, Management, Finance
- by Daniel Roesch
- •
- Business, Financial System, Social Science Research Network, Correlation

PurposeThe purpose of this paper is to determine the level of flexibility in loan products offered to smallholder farmers in Siaya County in Kenya and to examine the effect of flexibility on access to credit.Design/methodology/approachThe paper uses primary survey data from a sample of smallholder farmers in Siaya County in Kenya who had borrowed from various lending institutions within the study area. The paper develops an index variable of loan flexibility using multiple correspondence analysis (MCA) technique. The model is estimated using both OLS and truncated regression analyses. Access to credit is measured as the amount of loan borrowed by each farmer.FindingsThe authors find that the level of flexibility of loans offered to farmers is low. Furthermore, the authors find that the level of flexibility is not significantly correlated to access to credit. Further analysis using individual components of flexible loans show that refinancing and lines of credit are more likely to im...

- by Fredrick Odhiambo
- •
- Business, Agriculture, Loan, Agricultural Finance

The banking business is one of the booming businesses in Bangladesh. But at present, the sector is struggling to be on the growth path due to the growing proportion of Non-Performing Loan (NPL). The NPL has instigated a negative influence on the growth of Banking Business. This study has compared the severity of the impact of operational modes between two mainstream banking systems, traditional banking and Islamic banking, which may affect Non-performing loans. Other variables such as governance of the banks, bureaucracy, and size of the banks, the difference in reserve ratio, capital adequacy ratio, and interest rates have different impacts on NPL. We have explained the impact of the variables on the bank performance as per mainstream banking operational model. Finally, we have proposed some evocative measures through which the Non-performing loan can be minimized.

- by Sonia Rezina
- •
- Business, Social Science Research Network, Loan, NPL

We examine whether countries that have high levels of financial inclusion have fewer non-performing loans and loan loss provisions in their banking sectors. The fixed effect panel regression methodology was used to analyse the effect of financial inclusion on bank non-performing loans and loan loss provisions. Using data from 48 countries, we find that greater formal account ownership is associated with high non-performing loans. Bank loan loss provisions are fewer in countries that have high levels of financial inclusion only when financial inclusion is achieved through the combined use of formal account ownership, bank branch supply and ATM supply. Also, non-performing loans are fewer in countries that experience economic boom and high levels of financial inclusion

- by Dr Peterson K Ozili
- •
- Business, Management, Finance, Development Economics

PurposeThis paper aims to investigate bank earnings management using loan loss provision. The paper examines income smoothing, which is a type of earnings management. It compares the income smoothing behaviour of banks in the UK, France, South Africa and Egypt.Design/methodology/approachThe study uses the panel fixed effect regression methodology to analyse bank income smoothing.FindingsThe findings show that bank income smoothing is present in the UK and Egypt and absent in France and South Africa. Banks in Egypt used LLPs to smooth income before the global financial crisis. Meanwhile, bank income smoothing is pronounced in France during and after the financial crisis but was absent in the pre-crisis period. Also, bank income smoothing is reduced in countries that (1) have strict banking supervision, (2) adopt common law particularly the United Kingdom, and by countries that adopt civil law, particularly France and Egypt. Bank earnings management is greater in countries that (3) ad...

- by Dr Peterson K Ozili
- •
- Business, Management, Finance, Economics
- by Dr Peterson K Ozili
- •
- Business, Finance, Financial Economics, Accounting
- by Debashis Sarker
- •
- Business, Organizational Behavior, Economics, Ethics
- by Steve Karanja
- •
- Business, Microfinance, Loan, Finance Accounting