Consumer behaviour: effective loan packaging

• Main Authors: Leong, Pin Pin, Ng, Esther Chor Yong, Tong, Seryne Jun Hong
• Other Authors: Yip Hai Loon
• Format: Final Year Project
• Language: English
• Published: 2015
• Subjects: DRNTU::Business::Marketing::Consumer behavior
• Online Access: http://hdl.handle.net/10356/63935
• Institution: Nanyang Technological University

With growing affluence, consumer loans, classified as loans to professionals and individuals, is playing an increasingly important role in a bank's loan portfolio. The increasing trend of consumption through credit financing, coupled with the guidelines imposed on credit cards point towards a possibility for growth in the consumer loans' sector. Though lucrative, banks face intense competition in the consumer loans' market. This project aims to study consumer behaviour and preferences so as to facilitate banks in effective packaging of consumer loans. A survey is carried out using undergraduates as proxies to users of consumer loans. This survey aims to understand the typical borrowers' profile, their knowledge of effective interest rates and their reliance on "expert's" advice. The survey also explores how fringe benefits and the framing of these perk affect the attractiveness of a loan package.