Loan Delinquency: Some Determining Factors

Loan Delinquency: Some Determining Factors

The main objective of this paper is to investigate the determining factors of loan delinquencies from the perspective of borrower attributes and loan characteristics. Empirical results indicated that the borrower-lender distance factor, collateral, education levels as well as availability of a month...

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Bibliographic Details
Main Author: Fennee Chong
Format: Article
Language:English
Published: MDPI AG 2021-07-01
Series:Journal of Risk and Financial Management
Subjects:
loan delinquency
determining factors
Online Access:https://www.mdpi.com/1911-8074/14/7/320
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spelling doaj-0daaaa4d1cfc4bbea8be419bea69514e2021-07-23T13:49:48ZengMDPI AGJournal of Risk and Financial Management1911-80661911-80742021-07-011432032010.3390/jrfm14070320Loan Delinquency: Some Determining FactorsFennee Chong0Department of Accounting and Finance, Charles Darwin University, Casuarina, NT 0810, AustraliaThe main objective of this paper is to investigate the determining factors of loan delinquencies from the perspective of borrower attributes and loan characteristics. Empirical results indicated that the borrower-lender distance factor, collateral, education levels as well as availability of a monthly budget are having significant effects on loan delinquencies. On the other hand, level of income and gender have no significant impact on repayment behaviour. Credit is good as it allows the borrowers financial flexibility, however, debt is viewed as bad if it was not managed properly. Therefore, a correct attitude towards credit management and self-discipline can be encouraged to reduce loan default rates.https://www.mdpi.com/1911-8074/14/7/320loan delinquencydetermining factors
collection DOAJ
language English
format Article
sources DOAJ
author Fennee Chong
spellingShingle Fennee Chong
Loan Delinquency: Some Determining Factors
Journal of Risk and Financial Management
loan delinquency
determining factors
author_facet Fennee Chong
author_sort Fennee Chong
title Loan Delinquency: Some Determining Factors
title_short Loan Delinquency: Some Determining Factors
title_full Loan Delinquency: Some Determining Factors
title_fullStr Loan Delinquency: Some Determining Factors
title_full_unstemmed Loan Delinquency: Some Determining Factors
title_sort loan delinquency: some determining factors
publisher MDPI AG
series Journal of Risk and Financial Management
issn 1911-8066
1911-8074
publishDate 2021-07-01
description The main objective of this paper is to investigate the determining factors of loan delinquencies from the perspective of borrower attributes and loan characteristics. Empirical results indicated that the borrower-lender distance factor, collateral, education levels as well as availability of a monthly budget are having significant effects on loan delinquencies. On the other hand, level of income and gender have no significant impact on repayment behaviour. Credit is good as it allows the borrowers financial flexibility, however, debt is viewed as bad if it was not managed properly. Therefore, a correct attitude towards credit management and self-discipline can be encouraged to reduce loan default rates.
topic loan delinquency
determining factors
url https://www.mdpi.com/1911-8074/14/7/320
work_keys_str_mv AT fenneechong loandelinquencysomedeterminingfactors
_version_ 1721287422660050944

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