The Significance of Socioeconomic Factors on Personal Loan Decision (A Study of Consumer Banking in Local Private Banks in Pakistan)

11 Pages Posted: 29 Oct 2012 Last revised: 2 Nov 2012

See all articles by Rehan Azam

Rehan Azam

Iqra University

Muhammad Danish

affiliation not provided to SSRN

Suleman Akbar

IQRA University

Date Written: October 10, 2012

Abstract

This paper explores the influences of the approved results of loans cases, the loan applicants’ socioeconomic attributes in the decision of personal 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, socio-economic, consumer banking, logistic regression model

JEL Classification: D81, G21, G23, G29, G19, H00, A14, A13, D81

Suggested Citation

Azam, Rehan and Danish, Muhammad and Akbar, Suleman, The Significance of Socioeconomic Factors on Personal Loan Decision (A Study of Consumer Banking in Local Private Banks in Pakistan) (October 10, 2012). Available at SSRN: https://ssrn.com/abstract=2167960 or http://dx.doi.org/10.2139/ssrn.2167960

Rehan Azam (Contact Author)

Iqra University ( email )

DefenceView
Phase-2
Karachi, Sindh 75500
Pakistan
+923008294839 (Phone)

Muhammad Danish

affiliation not provided to SSRN ( email )

Suleman Akbar

IQRA University ( email )

Defence View
Shaheed-e-Millat Road (Ext.)
Karachi, Sindh 75500
Pakistan

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