دانلود رایگان مقاله بررسی ویژگی ریسک سطح وام گیرنده از وام آموزش و پرورش

Abstract

This paper empirically investigates the granular level risk of education loan using a cross section of data from 5000 borrowers obtained from four major public sector banks in India. The findings suggest that education loan defaults are mainly influenced by security, borrower margin, and repayment periods. The presence of guarantor or co-borrower and collateral significantly reduce default loss rates. The socioeconomic characteristics of borrowers and their regional locations also act as important factors associated with education loan defaults. The results suggest that by segmenting borrowers by probability of default and loss given default in a multidimensional scale, banks can adopt better risk mitigation and pricing strategies to resolve borrower problems. © 2016 Production and hosting by Elsevier Ltd on behalf of Indian Institute of Management Bangalore. This is an open access article under the CC BY-NC-ND license (http:// creativecommons.org/licenses/by-nc-nd/4.0/).

Concluding discussion

Using a sample data of 5000 randomly selected borrowers from four representative public sector banks in India, we studied the micro level risk of education loan and identified key risk factors of such loans across various geographies and constitutions. Our study reveals some interesting facts about education loan defaults in India. We find that male borrowers are 1.42 times safer than their female counterparts. The higher the age of the borrower, the higher is the chance of default. Married borrowers are riskier than unmarried ones. The likelihood of default is lower if the loan is secured and the borrower’s own contribution (or borrower margin) is higher. Borrowers with security are 1.5 times more likely to remain solvent than those without security. As age of the student increases, so does the likelihood of default (due to increasingfinancial commitments). The likelihood of default is lower if the loan is secured and the borrower’s own contribution (or borrower margin) for financing the course is higher. The longer the repayment period, the lower is the chance of default. These results have important implications on loan appraisal and credit monitoring by the banks.