How do lending relationships affect loan approvals in thrift and rural banks engaged in microlending in the Philippines?
The purpose of this study is to determine the effects of borrower, loan, and business characteristics to the loan approval in the microfinance institutions (MFIs). Also, to know which of these characteristics would yield a higher probability of approval. The study used binary data obtained from cond...
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| Main Authors: | , , , |
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| Format: | text |
| Language: | English |
| Published: |
Animo Repository
2012
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| Subjects: | |
| Online Access: | https://animorepository.dlsu.edu.ph/etd_bachelors/18334 |
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| Institution: | De La Salle University |
| Language: | English |
| Summary: | The purpose of this study is to determine the effects of borrower, loan, and business characteristics to the loan approval in the microfinance institutions (MFIs). Also, to know which of these characteristics would yield a higher probability of approval. The study used binary data obtained from conducting a simulation to loan officers and bank managers. The researchers used probit model to measure the probability of a loan getting approved. The results of the study showed that the borrower characteristic is the only variable that has an effect on approval of loans, specifically those individuals who have salaries and wages and a college graduate. |
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