The Study of Early Payoff Behavior of Loan Borrowers

• Main Authors: Show-Yeh Lai, 賴秀月
• Other Authors: Kuang-Hua Hsu
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/07687877504597650013

碩士 === 朝陽科技大學 === 財務金融系碩士班 === 98 === The early payoff behavior for loan borrowers has become an important studying topic for financing institutes in the present days. Such issue must be carefully considered during in the evaluation of accepting new loan and mortgage requests to avoid risks brought by the uncertainties of cash flow and interest earnings. Most of the previous studies concerning this topic have adopted Logistic Regression Model to predict the rate of early payoff for loan borrowers. This paper has also applied the same model for the early payoff behavior research. This research has analyzed the main factor concerning early payoff behavior and evaluated the rate of early payoff for loan borrowers to reach the following conclusion. The empirical study has revealed a positive correlation between early payoff and total borrowed amount, payback period, payback method, payback amount and interest rate. Payback method has showed the most significant influence to the early payoff decision. This paper has further found the pay-interest-first method has the highest early payoff rate.