Abstract
This study aimed to develop a framework on factors affecting payment default in low-cost housing loans. A total of 462 low-cost housing loan borrowers have participated in the study. Adapted-modified research questionnaire and stratified random sampling technique were employed to gather data from participants. The Exploratory Factor Analysis, Frequency Distribution and Binary Logistic Regression analysis were utilized as statistical tools to analyze the data. It revealed that there were five factors that characterized payment default of low-cost housing loans namely, Loan Effects and Liquidity, Loan Monitoring, Quality or Level of Account Management, Saving Attitude, and Loan Sufficiency/Adequacy. Further, 60 percent of the borrowers are paying their loans on time, meanwhile, 40 percent were paying their loan or before the due date. Using binary logistic regression, the study concluded that loan effects and liquidity (0.005 < 0.05), and saving attitude (0.000 < 0.05), were found to significantly influence the payment default of borrowers.
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More From: International Journal For Multidisciplinary Research
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