The significance of socioeconomic factors on personal loan decision a study of consumer banking local private banks in Pakistan

Rehan Azam (), Danish Muhammad and Suleman Syed Akbar

MPRA Paper from University Library of Munich, Germany

Abstract: This paper explores the influences of the approved results of loans cases, the loan applicants’ socioeconomic attributes in the decision of perusal loan. The results can improve the credit quality and avoid the misjudgment of screening personal loan customers and also establish a better personal loan risk management forecasting model. The main purpose of the present paper was to evaluate significance of loan applicant socioeconomic attributes on personal loan decision in the local private commercial banks of Pakistan. The statistical techniques, descriptive and logistic regression were used. The model identified that out of six independent variables, region, residence status and year with the current organization have significant impact on personal loan decision.

Keywords: personal loan; socioeconomic; consumer banking; logistic regression model (search for similar items in EconPapers)
JEL-codes: A13 D14 D31 D71 D81 G2 G21 G23 G32 H24 H8 H81 I22 K35 K36 L84 (search for similar items in EconPapers)
Date: 2012-10-10
New Economics Papers: this item is included in nep-cwa
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Citations: View citations in EconPapers (1)

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