Loan Products Research Articles

The Effect of Policy and Technological Innovations of Land Tenure on Small Landholders’ Credit-Worthiness: Evidence from Ethiopia

Since the early 2000s, Ethiopia has been implementing one of the largest land certification and digitalization programs in Africa, underpinned by technological and policy innovations. The reform indicates a promising avenue for increasing the collateralization of land use rights for smallholder households who have been credit constrained. However, there is scant evidence to what extent these reforms have influenced access to credit. To help generate new insights and fill this gap, the study employed administrative data generated from 11 districts’ digital land registers, survey data from 2296 households in 19 districts, key informant interviews, and policy and legal framework review. Descriptive and inferential statistics complemented by qualitative explanations are employed to analyze the results of the study. The results revealed that accessibility of information from the digital rural land registers increased the credit-worthiness of small landholders and reduced transaction costs and risks. The reform related to collateralization of land use rights also incentivizes financial institutions to establish new loan products for small landholders. The study concludes that while the two-stage land certification programs allow smallholders to possess documented land rights, their credit-worthiness may likely remain negligible without further technological and policy innovations. This implies two policy issues: the need to reform secured transaction laws and digitalizing registries for higher land rights trade ability.

Role of agricultural credit guarantee policies in encouraging green agricultural development: farmers' perspectives and responses, and the regulatory function of household capital.

Green agriculture is anticipated to be the leading trend for achieving sustainable and high-quality development in the agricultural sector in the future. The success of credit guarantee policies in promoting green agricultural development is closely linked to the level of participation and response from farmers in securing agricultural credit guarantee loans. We examined how farmers in Xiji, Ningxia, perceive agricultural credit guarantee policies and their involvement in such loans by analyzing 706 survey responses. Our analysis utilized a combination of statistical techniques, including principal component analysis, Heckman's two-stage model, and moderating effect model. The results indicate that out of the 706 surveyed farmers, 29.32% of households (207 households) had knowledge of the agricultural credit guarantee policy. While 66.86% of households (472 households) expressed interest in participating in agricultural credit guarantee loans, only 23.65% of households actually took part or participated multiple times. The overall awareness of the agricultural credit guarantee policy among farmers and their participation rate are both low. An increase in farmers' awareness of the agricultural credit guarantee policy can have a significant impact on their willingness and frequency of participation. The farmer's understanding of the agricultural credit guarantee policy has a significant impact on their decision to participate in credit guarantee loans. However, this effect can vary based on the farmer's income level, household capital, and factors such as social security, personal characteristics, location, and type of household business. To improve the support provided to farmers, it is advised to increase their awareness and understanding of agricultural credit guarantee policies. Furthermore, loan products and services should be personalized according to the capital available to each farmer's household, and the agricultural credit guarantee system and process should be enhanced to provide better assistance.

Analysis of Trends in Mortgage Lending in the Agricultural Sector of Ukraine

This study has the following objectives: to analyze the state of agrarian business lending and the market of banking services, establish the reasons for the insufficient level of mortgage lending implementation, and develop ways and tools to improve lending to the agrarian sector. The research methodology considers a systematic approach to the statistical analysis of bank lending in the agricultural sector of Ukraine, the development of criteria, and the implementation of the hierarchy analysis method for the reasonable selection of a loan product and banking institution. We conducted an analysis of the current state of lending to agricultural enterprises. We also analyzed lending trends, loan products, and basic lending terms by banks of Ukraine to agricultural enterprises. The share of bank lending of the working capital of the agricultural industry was estimated. The dynamics of preferential lending to the agricultural sector were determined. Its essence is that banks with partial repayment of loan rates are given loans at the expense of the state budget. The directions and volumes of borrowed loan resources usage by agricultural enterprises were considered. It is recommended to use the hierarchy analysis method by T. Saaty for choosing an effective loan product. We developed the criteria that could be applied when selecting a loan product. We also determined potential directions for the development of mortgage lending for the agricultural sector.

Factors Affecting Credit Access of Individual Business Households in ho chi Minh City, Vietnam

Purpose: The study studies the factors affecting access to credit of individual business households in Ho Chi Minh City (HCMC), Vietnam. The authors proposed policy implications based on research results that improve access to credit for individual business households. Theoretical framework: Access to formal credit can be understood in many ways. This article considers that access to proper credit is the ability of a customer to use the capital of a traditional credit institution based on meeting financial obligations - emphasizing the ability to repay both principal and interest. Design/methodology/approach: The authors chose a mixed method to conduct the study. This is a suitable research method to answer the research questions raised. Mixed methods include both qualitative and quantitative methods. However, this combination is the implementation of interlacing, replacing the two approaches to solve each problem, the research design's specific goal. The authors analyzed Data from May 2022 to December 2022 in HCMC based on the EFA and CFA, using the structural equation model analysis (SEM) method with SPSS 20.0 software and Amos. Findings: The article's findings showed five factors affecting access to credit of individual business households in HCMC, Vietnam. In particular, the loan procedure factor substantially impacts the five factors affecting credit access. Research, Practical & Social implications: The study has provided empirical evidence on the factors affecting formal credit access by a linear structural model and provides evidence that factors such as the loan procedure affect traditional credit affecting access to credit. Originality/value: The authors give some policy implications for state management agencies, credit institutions, customers, and mass organizations, such as increasing the role of local Government and increasing the ability to use banks, E-commerce, design new loan products to help individual business households access more formal capital, and at the same time, reduce black credit.

ANALYSIS OF THE EFFECTIVENESS OF MARKETING COMMUNICATIONS MULTIPURPOSE CREDIT PRODUCT PURCHASE DECISION THROUGH BRAND IMAGE AT PT.BANK SUMUT MEDAN MELATI BRANCH

Intense competition makes it increasingly difficult for banks to increase the number of customers in their efforts to maintain and increase their market share. So the banks have to work hard to stay competitive,namely through improving customer marketing communications and strengthening brand image. The aims of the research are, 1) To analyze the influence of marketing communications on purchasing decisions for Multipurpose Credit products at PT Bank Sumut Melati Medan Branch, 2) To analyze marketing communications affect the brand image of Multipurpose Credit products at PT Bank Sumut Melati Branch Medan. To analyze the influence of brand image on the decision to purchase Multipurpose Loan products at PT Bank Sumut Melati Medan Branch, 3) To analyze marketing communications affect the purchasing decision of Multipurpose Loan products through brand image at PT Bank Sumut Melati Medan Branch. This research is a descriptive type research with a quantitative approach. The population in this study is 64 people who use Multipurpose Credit products in 2020. Because the population size is very limited, this study did not use a sample, directly observing the population. Based on the hypothesis that has been formulated, all data is processed using the SEM-PLS analysis technique using SmartPLS 3.0 software. Based on the results of the test, it was found that marketing communication variables and brand image have a significant effect on purchasing decisions.

Perspectives by green financial instruments – a case study in the Hungarian banking sector during COVID-19

Recently, the management of the green financial sector has been widely influenced by global socio-economic concerns such as the COVID-19 pandemic and the energy crisis. The purpose of this paper is to evaluate, besides their environmental attitude, what opinions and experiences the affected stakeholders have about the sustainability-related processes in the Hungarian banking sector in the early 2020s. To assess this subject extensively, two questionnaire surveys were conducted in two consecutive years (2020/2021 and 2021/2022), involving 600 and 1,600 participants randomly chosen from banking databases, respectively. The results indicate that both residential and corporate participants have various but broadening knowledge of green financial instruments. Hungarian residential customers have pointed out the inconveniences of the most popular green loan product (Green Home Program), while there appears a distinct difference in green investment preferences between the two groups of respondents. Hungarian stakeholders are quite eco-conscious, and so are banks adopting sustainability and climate risk assessment actions, however, the implementations have much potential to exploit. Respondents also identify the energy crisis-related risks, while their trust in the banking system remains high even under volatile circumstances. These findings demonstrate that the Hungarian green banking sector has a high degree of crisis resistance with residential and corporate stakeholders behind giving trust and thereby the driving force toward the successful green transition.

A Comparative study of Personal loan Product of SBI and HDFC Bank

The study focuses on personal loans because they are in high demand and bhoom in the market today. It is an unsecured loan, also called a "signature loan," because it is based on the creditworthiness of the individual, with no need for any collateral security. The study basically highlights the comparison of public (SBI) and private (HDFC) sector banks on the personal loan product. The goal is to learn about people's first choices for personal loans and to determine who among them offers the best services. By using both the secondary and primary data and collecting the questionnaire responses of each bank borrowers. I concluded that people have blind trust, and his first choice is SBI, but its loan eligibility criteria do not allow every person to take a loan from them, and they charge a low interest rate. in contrast to HDFC, which offers quick loans at a high interest rate. Keywords: - Personal loan, SBI, HDFC,

A Comparative Analysis Between Timber Industry and Nontimber Forest Products Industry in Relation to Sustainability and Operators' Proactiveness

Abstract The balance among forest industry development, forest operators' well-being, and environmental conservation has been noted as an emerging concern in forest sustainability strategy. In this study, we innovatively adopted a multidimensional assessment method that integrates economic, environmental, and social dimensions to compare the comprehensive sustainability of roundwood, bamboo, tea products, and fruit industries, which are representative subtypes of the timber industry and the nontimber forest products (NTFP) industry. Additionally, our study examined whether a relationship exists between the forest industry's comprehensive sustainability and operators' proactiveness. We collected data on selected types of forest operators involved in productive loans from 115 villages in southern China between 2008 and 2020. Empirical results indicate that an increase in the comprehensive sustainability rank of the subtype forest industry led to growth in forest operators' financing amount. Specifically, the NTFP industry motivated operators' proactiveness more than did the timber industry, the effect of which was considerably greater in company group than in household group. Our findings reveal the necessity of policy interventions in developing countries to encourage the transition to optimizing forest industrial structure and sustainable forestry operations, which could initiate the socio-economic goal of sustained forest resource use and growth in forest sector output through the natural promotion effect posed by the sustainability advantages.

Restructuring of Indian Economy: Digital Transformation of Banking Sector

In the Indian economy, public sector banks are considered the backbone of the economy and now more than ever, private companies are entering the fray. This is great news for many customers, as customers are offered an expanded menu of savings and loan products and innovative services like online banking and easier transaction methods are being introduced. Banking system is an important aspect of every country's economy. Public Banks make transactions easy and efficient. The Indian banking sector has been experiencing a wave of change over the past decade. The growth in mobile banking and biometrics has affected the traditional business model of banks to some extent. However, most banks have shown tremendous resilience to these changes through adaptability and innovation. Advances in banking technology lead mobile banking to bring banking into the digital age: on the one hand, this duality between digitization and human factors is reflected in the banks' multichannel strategies. Accordingly, society's trust in the use of digital tools and processes in the economy has increased.

Edukasi Financial Ilegal Dalam Bentuk Pinjaman Online dan Investasi Online Berdasarkan Penilaian Otoritas Jasa Keuangan (OJK) Pada Koperasi Kelompok Wanita Tani “Melati Jaya” Kelurahan Sukamenanti Baaru Kecamatan Kedaton Kota Bandar Lampung

Currently, Fintech does not only enter Banking Financial Institutions, but also Non-Bank Financial Institutions. This can be seen in Financial Technology products circulating on social media, namely online loans and online investments. This condition actually provides convenience to the community, but there is also a negative impact, namely people who are trapped in online loans and online investments. There are many findings of online loan products and illegal online investments, this creates unrest in the community. Therefore, there is a need for education regarding illegal online loans and illegal online investments in collaboration with the Financial Services Authority (OJK) so that the public, especially mothers, are more careful in choosing to use online loan services and online investment. The method we use in this PkM activity is to provide education to participants regarding illegal online loan products and illegal online investments based on the assessment of the Financial Services Authority (OJK). The purpose of this PkM activity is to provide education regarding illegal online loan products and illegal online investments based on the assessment of the Financial Services Authority (OJK) so that they are more careful in choosing online loan services and online investments. The object of this PkM activity is the Women Farmers Group "Melati Jaya" Sukamenanti Baru Village, Kedaton District, Bandar Lampung City.

Bank Technology Adoption and Loan Production in the U.S Mortgage Market

Bank Technology Adoption and Loan Production in the U.S Mortgage Market

Small Banks Really are Different: Unexpected Deposit Flows, Loan Production, and Off-Balance-Sheet Funding Liquidity Risk

Small Banks Really are Different: Unexpected Deposit Flows, Loan Production, and Off-Balance-Sheet Funding Liquidity Risk

Time Series Analysis of Philippine Agricultural Rice Productivity using Cobb-Douglas Production Function from 2017 To 2022

One of the main agricultural industries in the Philippines, particularly in Central Luzon, has been rice production. This study investigated the influences and determinants on national rice production. Labor, capital, credit to agriculture, spending, irrigated areas, land, and fertilizer are the relevant factors. The Cobb-Douglas Production Function was used in the study. The relationship between production output and production inputs (factors) is modeled by the Cobb-Douglas Production Function. It is used to calculate ratios of inputs to one another for efficient production and to estimate the technological change in production methods. It measured the elasticity, marginal rate of contribution, and marginal returns of capital, labor, fertilizer, irrigation, production loan, farm area, and government spending to the total agricultural rice productivity of the Philippines. This paper also analyzed the production in terms of its input and output and estimated the relationship between each input and output. The results of this study showed that capital, expenditure, and land do not significantly affect the volumes of production of rice. While labor, credit to agriculture, irrigated areas, and fertilizer significantly affect the volume of production of rice.

The Impact of Emerging Lending Products on Young People’s Over-Consumption - Based on a Behavioral Economics Perspective

The development of the Internet has had a major impact on this generation of young people. The rise of online media has led to an increasing number of lending product companies seeing opportunities to manipulate the psychological accounts of university students, using tactics such as the payment segregation effect so that they lose sight of the actual value of money and engage in irrational spending behavior. The immature consumption concept of university students makes them more susceptible to the influence of these loan products. The article analyses the consumption behavior of university students at home and abroad through behavioral economics theories, explores the basic influence of lending products on university students’ consumption and various promotional effects and consumption inducements, and proposes countermeasures and suggestions for solutions.

Low-carbon transition risks for India’s financial system

As the low-carbon transition accelerates, loans to and investments in carbon-intensive assets, firms and sectors are at risk of not generating the anticipated returns, with implications for individual financial institutions as well as financial markets more broadly. However, research on this topic has largely been focused on high- and upper-middle income economies to date. In this paper, we explore the salience of this issue in India – one of the world’s largest emitters and economies – by asking: (1) how extensive is financial-sector exposure to transition risks? And: (2) are finance professionals and financial institutions taking sufficient action to manage those transition risks? Our findings reveal that India’s financial sector is much more heavily exposed to low-carbon transition risks than standard borrowing classifications might suggest. For example, our granular assessment of individual loans and bonds finds that three-fifths of lending to the ‘mining’ sector is for oil and gas extraction, while one-fifth of ‘manufacturing’ debt is for petroleum refining and related industries. We also find that electricity production – by far the largest source of emissions – accounts for 5.2% of outstanding credit, but that only 17.5% of this lending is to pureplay renewables. Yet our survey of India’s largest financial institutions suggests that there have been limited efforts to identify, measure or manage low-carbon transition risks. Fewer than half of the 154 finance professionals surveyed were familiar with environmental issues including climate change mitigation and adaption, greenhouse gas emissions or transition risks. Only four of the ten major financial institutions surveyed collect information on ESG risks, and these firms do not systematically incorporate that data into business continuity planning, internal capital adequacy assessment processes, credit risk assessments, enterprise risk management frameworks or loan product pricing. Given extensive financial-sector exposure to low-carbon transition risks coupled with the absence of bottom-up action to manage those risks, our findings suggest that financiers, regulators and policymakers in emerging and developing economies should be acting swiftly to ensure an orderly transition to net-zero.

Digitalization of the banking sector in Hungary

During the pandemic period, considerable attention was paid to the online digital financial services. Tangible services provide tangible benefits to both the national economy and citizens. Easily accessible and popular options contribute to reducing the use of cash, expanding e-commerce and administration, and raising financial awareness, as well as creating a sustainable financial system. The widespread use of digital services ensures connection to the global world, more effective use of opportunities, and thus success either as an individual, as a company, or as a government actor. The emergence of FinTech applications has also been helped by the fact that while the operation of financial institutions is strictly regulated and controlled by the authorities, the operation of technology companies in this field is tied to far fewer mandatory regulations. It is important to note that there are still many issues to be resolved, one of which is the issue of equal regulation of FinTech companies and traditional banks. The purpose of the study is to evaluate the current state of digital banking in Hungary in the field of residential services and highlight the paths for further development. The main statements of the paper are the following: Overall, the level of digitization of the Hungarian banking system can be considered medium. In connection with the COVID-19 epidemic, the digitization of customer relations and products has come to the fore in the sector. Among the loan products, the overdraft facility for individuals and the degree of digitization of personal loans are the highest. At the corporate level, online loan applications are even less resolved, largely due to the evaluation and assessment of complex collateral requirements and the low prevalence of digital solutions for contracting and signing. This article proposes more sophisticated regulations, since the regulatory issues in digital financial innovation pose challenges for regulators. The main task should be to create the conditions for the competitiveness and safe operation of the financial intermediation system in the digital age, so the digital interfaces and communication platforms should be standardized. Regarding to the current EU regulation, the security elements of the digital payment system should be strengthened.

CSRLoan: Cold Start Loan Recommendation with Semantic-Enhanced Neural Matrix Factorization

Recommending loan products to applicants would benefit many financial businesses and individuals. Nevertheless, many loan products suffer from the cold start problem; i.e., there are no available historical data for training the recommendation model. Considering the delayed feedback and the complex semantic properties of loans, methods for general cold start recommendation cannot be directly used. Moreover, existing loan recommendation methods ignore the default risk, which should be evaluated along with the approval rate. To solve these challenges, we propose CSRLoan for cold start loan recommendation. CSRLoan employs pretraining techniques to learn the embeddings of statements, which captures the intrinsic semantic information of different loans. For recommendation, we design a dual neural matrix factorization (NMF) model, which can not only capture the semantic information of both loan products and applicants but also generate the recommendation results and default risk at the same time. Extensive experiments have been conducted on real-world datasets to evaluate the effectiveness and efficiency of the proposed CSRLoan.

Legal and Regulatory Framework for Digital Credit Providers in Nigeria: Lessons from Kenya’s Digital Credit Providers Regulations, 2022

The current issue that affects Sub-Saharan Africa is the proliferation of unlicensed digital credit providers. These digital credit providers employ the use of information and communication technology in making their loan products attractive. Their loan recovery methods are crude and life-threatening coupled with a very high-interest rate. This article discusses the current situation in Nigeria and Kenya. The Nigerian government, through joint action, carried out a raid on these digital credit providers, freezing their bank accounts and ordering that google play store and apple store should remove them from their platforms. Kenya has been able to put these digital credit providers under the regulation of the Central Bank of Kenya. In its press release dated March 21, 2022, the Central Bank of Kenya (CBK) announced the publication by Legal Notice No. 46 of March 18, 2022, of the Central Bank of Kenya (Digital Credit Providers) Regulations, 2022. The Regulations were issued in accordance with Sections 57(1), 57(3), and 57(4) of the Central Bank of Kenya Act (the CBK Act). They provide for the licensing and oversight of previously unregulated Digital Credit Providers (DCPs). The Regulations are now operational This article examines the regulations and concludes by recommending that Nigeria should emulate Kenya by publishing Central Bank of Nigeria Digital Credit Providers Regulations.

Service Quality Impact on Customer Satisfaction of Multipurpose Loan Products

This study aims to determine: How the influence of service quality on customer satisfaction at PT WOM Finance Kemayoran Branch, Central Jakarta. This research is a quantitative study. The research location is PT WOM Finance, Kemayoran Branch, Central Jakarta. The population in this study were customers of PT WOM Finance Kemayoran Branch, Central Jakarta, the sampling method was carried out by the random method, and using the Slovin 79.36 formula rounded up to 80 respondents. Based on the results of partial hypothesis testing, the T-test of the Service Quality variable obtained a T-count value of 7,297 while the statistical table (T table) was 1,665 and the significance value of the Service Quality variable was 0.000 less than 0.05. So it can be concluded that Service Quality partially has a positive and significant effect on Customer SatisfactionKeywords: Service Quality, Customer Satisfaction

Service Quality Impact on Customer Satisfaction of Multipurpose Loan Products

This study aims to determine: How the influence of service quality on customer satisfaction at PT WOM Finance Kemayoran Branch, Central Jakarta. This research is a quantitative study. The research location is PT WOM Finance, Kemayoran Branch, Central Jakarta. The population in this study were customers of PT WOM Finance Kemayoran Branch, Central Jakarta, the sampling method was carried out by the random method, and using the Slovin 79.36 formula rounded up to 80 respondents. Based on the results of partial hypothesis testing, the T-test of the Service Quality variable obtained a T-count value of 7,297 while the statistical table (T table) was 1,665 and the significance value of the Service Quality variable was 0.000 less than 0.05. So it can be concluded that Service Quality partially has a positive and significant effect on Customer SatisfactionKeywords: Service Quality, Customer Satisfaction