Loan Recipients Research Articles

Predicting the Risk of SME Loan Repayment using AI Technology-Machine Learning Techniques: A Perspective of Malaysian Financing Institutions

This study aimed to predict the likelihood of small and medium-sized (SMEs) defaulting in loan repayment by developing a model using artificial intelligence technology, namely Machine Learning algorithms. The research employed the Louvain clustering algorithm to effectively group the loan recipients based on their cumulative repayment amounts over time, and two distinct machine learning techniques, namely logistic regression (LR) and k-nearest neighbour (k-NN) were harnessed to evaluate their efficacy in classifying recipients' risk levels, namely low-risk or high-risk. The LR model achieved mean accuracy score of 100% which indicates a high level of precision that can effectively predict the risk of SME loan repayment. This is further supported by the Area Under the Curve (AUC) value of 1.0 obtained by the LR model which suggests that the model has achieved optimal separation of the two classes, and therefore it is highly reliable for risk prediction. This technique is believed to enhance the efficiency and accuracy of credit risk assessment that could enable financial institutions (FIs) to optimize their decision-making processes and mitigate potential losses caused by the defaulting loans. Hence, this study is significant as it proves the effectiveness of machine learning technique in predicting loan repayment risk in FIs in Malaysia.

Sistem Pendukung Keputusan Pemberian Pinjaman Karyawan PTBA UPO dengan Metode Simple Additive Weighting (SAW)

The PTBA UPO Employee Cooperative is a cooperative specifically designed for PTBA UPO employees, including both active and inactive employees. To facilitate the decision-making process regarding the priority loan recipients from the PTBA UPO cooperative, a system is needed to help make decisions more quickly, effectively, and efficiently. A decision support system is a method that aims to assist individuals or companies in making accurate, fast, and precise decisions. The Simple Additive Weighting (SAW) is a decision-making method that uses weighted summation. Several criteria have been established to determine the granting of loans at the PTBA UPO Cooperative, including membership status, needs, loan order, income amount, and previous loan balance. Members of the PTBA UPO cooperative who meet the predetermined criteria and have a preference final score become the priority loan recipients. This decision support system makes it easier for Savings and Loans Managers and PMs (Assistant Managers) to quickly determine which members have the highest priority in receiving loans.

Juridical consequences of lending and borrowing agreements that are covered with the substance of buying and selling paid off ownership rights to land

The position of the lending and borrowing agreement which is covered by the substance of the sale and purchase of paid off land ownership rights, in this case the position is based on an agreement or loan agreement between the parties which requires the borrowing party to pay off the debt after a certain period of time accompanied by payment of a number of rewards. Lending within a certain period of time set by the lender. The loan recipient pays off the loan, by returning the loan money. The position of the lending and borrowing agreement relates to freedom of contract, the parties can regulate the contents of the agreement as long as it is not prohibited by law and propriety and in the contract must fulfill the terms of the agreement. This position is born from the existence of an agreement between the two parties, namely the borrower and the lender, so with this agreement the loan agreement is binding on both parties, that is, the parties cannot cancel the loan agreement without the approval of the other party. If the loan agreement is canceled or terminated unilaterally, the other party can sue. After the money that is the object of the agreement has actually been handed over by the lender to the borrower, the borrower must or has the obligation to return the loan on time to the lender in accordance with the agreement in the agreement.

Impact of Race, Ethnicity, and Gender on the SBA Paycheck Protection Program (PPP) Loan Amounts

The Paycheck Protection Program helped to preserve employment relationships during the sudden shutdown of economic activity due to the COVID-19 pandemic. This paper analyzes whether small business owners’ race, ethnicity, or gender played a role in the PPP loan amount received. In 2020 and 2021, non-White-, Hispanic-, and female-owned small businesses received smaller PPP loans than their business counterparts of the same size. Larger companies displayed increased discrepancies in loan amounts. From 2020 to 2021, disparities among non-White business owners decreased; however, female and Hispanic owners continued to receive less in PPP loans than male and non-Hispanic owners. Lee bounds estimates show that female-owned businesses in rural counties received smaller PPP loans per employee than female-owned businesses in urban counties. Structural interviews with PPP loan recipients in Northeast Ohio showed that businesses receiving smaller loan amounts had more difficulties and less knowledge about the loan application process compared to larger loans recipients.

The Insurance Implications of Government Student Loan Repayment Schemes

We use new administrative data that link detailed information on Canadian student loan recipients with their repayment and income histories from the Canada Student Loans Program, income tax filings, and postsecondary schooling records to measure the extent to which student borrowers adjust loan repayments to insure against income variation. Loan payments are shown to increase in income, more so in early years and for individuals with higher initial debt. We estimate that on average an unexpected $1,000 change in annual income is associated with a $30 change in loan payment. Loan repayments are also used to absorb persistent income variation.

AKIBAT HUKUM PENERIMA DANA LAYANAN PENDANAAN BERSAMA BERBASIS TEKNOLOGI INFORMASI GAGAL BAYAR

Technological innovations with financial features continue to emerge, marking the momentum of transformation in the financial world. Fintech Lending or Fintech Peer to peer Lending is a money lending and borrowing service in the financial sector with the use of information technology, this type provides loans for people's urgent needs. This technology-based financial service offers financial products that provide hope for people who need money. The effects that occur are problems for recipients of online loan funds because they are unable to pay so they are trapped in debt and the risk of defaulting on loans or known as "GalBay". The purpose of this research is to find out the binding that is born, the legal consequences and legal responsibilities of recipients of information technology-based joint funding service loans who default. The research method used is normative legal research, namely library law research including legal principles, and legal synchronization. The results of the research, regarding the binding on information technology-based joint funding services, namely the agreement made until the default committed by the recipient of the funds. The legal consequences of recipients of information technology-based joint funding services making default or default, are getting a warning from the Funder, will receive a penalty and interest expense according to the agreement on the electronic contract, Collection from other parties in collaboration with the Funder will be included in the SLIK blacklist of the Financial Services Authority. Meanwhile, the responsibility that can be imposed on the recipient of funds is that they are still obliged to pay off all loan installments along with penalty obligations in accordance with the agreed electronic agreement. The responsibility ends if the customer who defaults or fails to pay fulfills his obligations

MEMBANGUN LITERASI KEUANGAN DAN INVESTASI SYARI'AH

The synergy of the Micro Waqf Bank Program with Qardhul Hasan is a debt that can be given either in the form of money or in the form of borrowed goods, such as cars, laptops, motorbikes or others, with the condition that the loan recipient must return the goods to the owner in their original condition without any part. taken or without any addition to the item. The end and main goal of the Micro Waqf Bank Program with the al Qordhul Hasan contract is the prosperity of the community as a result of the chain effect arising from the procurement of infaq and shadaqah funds for muzakki, based on the nature and high sense of concern for others.Thus, the Qardhul Hasan contract in the Micro Waqf Bank Program is carried out on the basis of social, humanitarian and mutual welfare by helping to provide capital for businesses. The implementation of the Qardhul hasan contract in Islamic financial institutions can be an option for someone who needs loan funds. If the recipient of the debt wants to give charity, it is not determined by the debtor, but on the consciousness of oneself.

Settlement of Online Loan Agreement Disputes in the Event of the Debtor Dies

The current development of information and communication technology has an impact on people's economic activities, one of which is the activity of borrowing money. Borrowing and borrowing money that was originally carried out conventionally, now many have switched to online lending and borrowing activities. However, in its activities, there are problems experienced by creditors (lenders) related to settlement of obligations if the debtor (lender) dies before the repayment period. This happens because in the observed online lending and borrowing money agreements, many do not include the form of settlement of obligations if the debtor (loan recipient) dies. The issues raised in this study are how legal protection is for creditors in online money lending agreements in the event that the debtor dies and what forms of dispute resolution efforts are made in online money lending and borrowing agreements in the event that the debtor dies. This research method uses a normative legal research type with a statutory approach and a conceptual approach. The results of this study indicate that the form of legal protection for creditors in online money-lending agreements in the event that the debtor dies is through preventive protection (applying the 5C principle and every transaction using an escrow account and virtual account), while repressive protection (organizers help through billing units, assist in mediation, make complaints). And efforts to resolve disputes can be done through non-litigation (outside court) and litigation (in court).

CRIMINAL LIABILITY OF ONLINE MONEY LENDERS

Although it is most commonly associated with financial loans, a loan is a kind of liability that can include any kind of tangible asset. Similar to other debt instruments, loans involve the redistribution of financial assets over time between the debtor and the lender. Online loans are financial assistance provided by financial institutions in which the loan application is conducted using an application controlled by the financial institution. The availability of online loans makes the loan application procedure easier, faster, and less complicated. Legal research using juridical normative research methods was conducted to understand the legal issues and legal relationships of criminal liability of online lenders. This research aims to examine the effectiveness of positive law in Indonesia in law enforcement of online money lending criminal cases and examine the actions of online money lending criminal offenders who make threats, especially through cell phones, have clear legal sanctions as an effort to protect online money loan recipients. This criminal liability is in the form of punishment. There are criminal sanctions for companies or individuals including debt collectors as part of fintech lending who commit violations in the form of disclosure of personal data subject to Article 32 juncto (jo) Article 48 of the amendment to the Bill of Act on Electronic Information and Transaction.

Associations among Historical Neighborhood Disinvestment, Hazardous Air Pollutants, and Current Adult Asthma Prevalence

Associations among Historical Neighborhood Disinvestment, Hazardous Air Pollutants, and Current Adult Asthma Prevalence

Penerapan Metode TOPSIS Dalam Sistem Pendukung Keputusan Kelayakan Penerima Pinjaman Kredit

In determining the eligibility of loan recipients at Finance companies, it is carried out with the approval of the Head Office, then the stage of checking customer data is carried out with the approval of the office manager. Furthermore, in analyzing the decision-making eligibility of customers receiving credit loans, using a manual system that takes a long time, therefore, a decision support system is needed that functions to minimize excess or lack of data. In this study, it will be explained how the process of determining alternative credit recipient customers applies the TOPSIS method. The research results will produce the highest ranking value which will be determined as the highest alternative. The data used in this study are 10 alternative data samples using 5 criteria, so that the results of calculations that have been carried out using 8 alternatives and 5 criteria produce the best alternative, namely alternative A2 above with a value of 0.848 as a recommendation for a customer who will be entitled to receive a loan from finance company.

Legal Protection for Borrowers for Agreements with Standard Clauses on Implementation Fintech Lending

The purpose of this study is to explore legal protection for loan recipients for agreements with standard clauses in implementationfintech. The research method is normative juridical, with a statutory and conceptual approach. The results of the study show that legal protection in standard agreements shows that it has not been realized properly, this is because there are principlestake it or leave it which then set aside the legal norm in the form of the principle of freedom of contract. Besides, there is no embodiment of the principle of consumer protectionfintech lending, namely transparency and complaint service mechanisms. The legal remedies in the agreement tend to prioritize repressive efforts and override preventive measures by not providing education about the complaint mechanism. which leads to injustice for the recipient of the loan. Keywords: Legal Protection, Fintech Lending, Standard Agreement.

Determinants for successful loan credits for older people in Thailand

Aging populations are gradually creating financial distress for governments, and Thailand is no exception. Effective policies for improving elderly welfare must be formulated since the population shift to older age is moving at a faster pace than economic growth. Older people prefer to live actively and independently in order to be less burdensome to their family members and are actively engaged in activities, either voluntarily or because of necessity, even after retirement age. The Thai government initiated a microcredit scheme for eligible older people in order to overcome the difficulty of gaining access to credit. The objective of this research is to explore and evaluate the effectiveness of the Older Persons Fund (OPF) organized by the Thai government to provide seed money for loans to promote active aging in Thailand. Data were collected nationwide using stratified sampling in urban and rural districts from members affiliated with the Older Persons Fund. Structured interviews were conducted with 578 loan recipients. The methodology includes inferential statistics and the multinomial logit choice probabilities model to determine the factors for successful active aging of the loan recipients. The results indicate that the purpose of the loan is a significant factor for a successful outcome. The results also imply that older people provide input into the economy and are not a burden on government expenditure in the long run by promoting active aging projects through microcredit schemes in Thailand.

Poor Women's Participation in Credit-based Self-employment: The Impact on their Empowerment, Fertility, Contraceptive Use, and Fertility Desire in Rural Bangladesh

By analysing a 1992 national level household sample survey data collected from the female recipients of collateral-free loans of three relatively large rural development agencies in Bangladesh-GB, BRAC, and BRDB-the present study shows that the participation in income-generating projects by poor rural women had been associated with their increased level of contraceptive use, decreased level of fertility, elevated level of desire for no more children, and enhanced level of empowerment. Some of these effects were much higher than those of the corresponding levels for Bangladesh as a whole, indicating the possible additional effect of income-generating projects as well as the effects of their population-education components. The implications of these findings for an integrated development strategy m Bangladesh are discussed.

The Paycheck Protection Program and small business performance: Evidence from craft breweries.

The Paycheck Protection Program (PPP) provided approximately US $790 billion in COVID-19 relief funds to small businessesacross the United States. This study merges a verified industry dataset of craft beer producers with government microdata on PPP loan recipients to examine the relationship between PPP funding and small business performance during the pandemic. Results indicate that firms receiving PPP funding were more likely to remain in operation and experience a smaller decline in annual production. However, even within a single industry, COVID-19 had heterogeneous effects on different market segments, demonstrating the importance of a firm's pre-pandemic business model on its flexibility and resiliency during a crisis. Finally, using a quasi-experiment that exploits a natural break in the loan program, the study suggests a positive causal effect of the role of loan approval timing on short-run performance outcomes. These findings provide evidence that the PPP alleviated some losses induced by COVID-19, but questions remain about the program's distribution and long-term impacts. The US federal government created the Paycheck Protection Program (PPP) to minimize the economic damages from COVID-19 on workers and small businesses. One industry hit particularly hard by the pandemic was the craft brewing industry, making it an ideal industry to explore whether the PPP achieved its objectives. The results show that receiving a PPP loan increased the likelihood of remaining in business through the pandemic. Additionally, while most craft breweries experienced a decline in annual production from 2019 to 2020, firms that received a PPP loan experienced a smaller reduction. Breweries that received the earliest funding also performed better, suggesting that loan timing played a key role in performance outcomes. Taken together, the study suggests that the government program helped reduce economic damages associated with COVID-19, but more work is needed to fully understand the program's impact. The online version contains supplementary material available at 10.1007/s11187-022-00717-3.

Role of Islamic Microfinance in Socio-economic Development

Prime Minister Imran Khan introduced an interest-free loan programme through a public-private collaboration as part of the Kamyab Jawan Programme 2022. A huge number of low-income and susceptible households benefited immensely from this programme. This program's goal is to end poverty by giving low-income individuals interest-free loans to launch their own small businesses. Primary data for this research was gathered from 184 beneficiaries of the lenders who received interest-free loans from the prime minister under the Kamyab Jawan programme in two districts of Sindh. Records of beneficiaries were taken from two chosen districts, and each component was chosen using a simple random sampling method. For this study, study participants of both genders were represented equally. A self-managed device was used to gather data directly from the recipients of the Prime Minister's interest-free loans. The findings show that the Prime Minister's Interest Free Loan Program is significantly enhancing the socioeconomic, economic, and social and political wellness of the recipients. Most survey participants reported significantly improved financial, personal, and sociopolitical wellness. Enhanced social, financial, and political wellness were also found to be related to interest-free loans in one sample binominal assessment. The majority of participants expressed satisfaction with the interest-free loan programme offered by the Kamyab Jawan programme, believing that it had a significant impact on decreasing the level of security vulnerabilities and poverty following the COVID-19 disease outbreak. The study's author suggested that this program's based on geography reach be increased in some way to attain as many poor and vulnerable communities as possible.

Do electronic and economic empowerment protect women from intimate partner violence (IPV) in India?

Intimate partner violence (IPV) is a major public health problem. Electronic empowerment has several positive impacts on health. No study has examined whether electronic empowerment prevents intimate partner violence. Economic empowerment has positive and negative effects on IPV victimization. The current study was conducted to investigate whether economic and electronic empowerment of women act as protective factors against IPV in India. A national representative sample of 66,013 ever-married women from 36 member states and union territories of India has been used from the National Family Health Survey 2015 to 2016. Emotional, physical and sexual violence against women by husbands were target variables. We used bivariate and multivariate analyses. The prevalence of emotional violence was 13%, physical violence was 28% and sexual violence was 7%. IPV against women was as follows: The prevalence was higher among women living in rural areas, belonging to Hindu religion and those belonging to Scheduled Castes. Higher education and higher socio-economic status were found to be protective factors against IPV. The prevalence of IPV was higher among the working women, among those having knowledge of business loans for women and the recipients of such business loans. Exposure to media was found to reduce IPV. The women who used mobile phones and SMS facility experienced less violence. Economic independence of women was found to be a risk factor for IPV in India, whereas electronic empowerment was a protective factor. In the Indian context, policymakers should make use of mobile phones and support SMS use in the IPV awareness programs. Women empowerment, combined with gender equity, can reduce the prevalence of violence against women.

Perceptions of Mental Health among Pakistani Women with Micro-Finance Loans: An Interpretive Descriptive Study

Mental health has gained significant recognition and importance as a crucial aspect of overall well-being. An individual's mental health is influenced by the intersection of individual, social, cultural, and systematic sources of stress and resilience. It is important to include subjective conceptualizations of mental health and well-being to develop culturally sensitive approaches to mental health promotion. This qualitative study aimed to understand how urban-dwelling women living in Pakistan who are micro-finance loan recipients conceptualize the meaning of mental health. Using interpretive description methodology, data were collected and analyzed through in-depth, semi-structured interviews conducted in Urdu with a purposeful sample of 32 women. An inductive approach to content analysis was employed to code and categorize the data. Participants conceptualized mental health as the presence of peace and the absence of tension. Chronic sources of tension included a lack of essential resources, safety, and security in their day-to-day living in Karachi, Pakistan. Implementing policies to address women’s basic needs, including access to education, would be a helpful first step towards mental health promotion for Pakistani women. Integrating concepts that reflect women’s understanding of mental health will also be a useful first step in developing culturally sensitive mental health assessment tools.

Meeting Needs and Seeking Peace: Experiences of Micro-Finance Loan Recipient Women of Karachi, Pakistan

The association between socio-economic status and health is well established. While involvement in a micro-finance program has been shown to reduce poverty among women, little is known about how this involvement impacts their mental health. Using interpretive descriptive methodology, this qualitative study explored women’s perceptions of how their participation in micro-finance programs influenced their mental health. Data were collected and analyzed through interviews with 32 urban-dwelling women from Karachi, Pakistan who have been micro-finance loan recipients for a period of 1 to 5 years. Women recognized micro-finance programs as being a major inspiration towards enhancing their mental health. The majority of participants, regardless of the number of years they held a micro-finance loan, revealed that seeking micro-loans and establishing income-generation activities assisted them to reduce tensions related to meeting their fundamental needs. Among the few participants who were not experiencing positive mental health at the time of the interview, they could foresee hope towards a better and an improved state of mental health. The need for and the importance of vocational skills training, economic stability, opportunity for education and environmental safety were echoed by these “everyday women” of Pakistan. Multiple stakeholders and micro-finance program should work collaboratively for the promotion of mental health determinants.

Motorcycle Credit Purchase Decision Support System With Additive Ratio Assesstment (ARAS) Method

In the era of globalization as it is today, life is felt to be growing rapidly, the number of people's needs for private vehicles to facilitate all daily activities. The development of increasingly advanced technology makes us to know the importance of the use of computers in the process of processing data quickly and practically. CV. Aneka Teknik is a company engaged in motorcycle sales services by way of cash and credit. This company cooperates with several Leasing. So far, the company only accepts application files from consumers without testing files from consumers whether they deserve credit or not. This makes leasing difficult to handle so that the process of granting credit becomes slow. To overcome this, the author makes an application for a decision support system in determining the application of prospective customers to obtain credit facilities. After CV. Aneka Teknik processes incoming consumer files, so the files that are eligible to get credit are sent or submitted to leasing. The highest score in the ranking obtained by the ARAS method decision support system in the highest position is A9 with the name Apriandi Alfa Reza Saragih with a value of 0.1538 who has the right to be selected as a motorcycle loan recipient