Loan Terms Research Articles

A socioeconomic approach to the profile of microcredit holders from the Hispanic minority in the USA

The subject of this study is the microcredit market in the USA, more specifically in Florida. The justification for choosing this specific state is the massive presence of the Hispanic population. This will facilitate a generalization of the obtained results to the microcredit market in Latin American countries. Thus, the objective of this study is to analyze the profile of microcredit holders and their companies from socioeconomic and financial points of view. As our data also consider the degree of repayment of the microloans included in the sample, the clients’ profile is related to the punctuality or default of their corresponding loan repayments using the methodology of multinomial logit regression. The variables used in this study refer to personal information concerning borrowers (gender, age, education level, and marital status), the economic situation of their respective companies (closeness to the lender, number of workers, and revenues), and the characteristics of granted loans (principal, term, and purpose). However, the results of the regression show that only two variables are significant at the 5% significance level: the borrower’s age, which has a positive effect on repayment punctuality, and the loan term, which exhibits a negative effect. The findings of this study have clear implications, as they can help lenders design suitable microloans adjusted to customer profiles. Finally, future research should include other demographics and characteristics of affected companies.

ESTIMASI CADANGAN KLAIM PRODUK ASURANSI JIWA KREDIT UNTUK PESERTA PENSIUN

Theoretically, insurance companies rarely suffer losses. Insurance companies in managing finances, are very careful, because they will face possible risks in the future in the form of claim payments. Therefore, in selling the products, they do not use the usual forms of marketing. They use agents and brokers in distributing risk products that are sold. In addition, for certain reasons, the company also cooperates with other parties. This cooperation is essentially a form of strategic alliance. Namely cooperation between the insurance company as the issuer of the policy with the bank as the owner of credit for customers. The problem is how insurance companies face the risk of claims in the future for bank customers who have retired status and are vulnerable to the risk of death. This article discusses term loans from customers at a bank as the insured who has retired status and they are guaranteed by an insurance company as the insurer. How much funds are provided by the insurer in the future to pay the risk of death (claims) of the insured? Using the semi-continuous prospective reserve method for term life insurance products, the results show that the insurer is experiencing liquidity difficulties in order to bear the burden of claims that have already occurred and are expected to suffer losses later. The reinsurance scheme offered has also not been able to cover the insurer's losses. Therefore, the most feasible scheme to assist the insurer's liquidity due to high claims is to enlarge new policies through the scheme of entry age for the insured with a younger age while continuing to run the reinsurance scheme.

Investigation of the Impact of the Peer-To-Peer Lending Market on the Membership Motivation of the MSME

FinTech has several activities in it, one of which is Peer-to-Peer lending. P2P (Peer-to-Peer lending) financing is an alternative for micro, small and medium enterprises (MSMEs) to obtain funding. This study identifies the benefits of MSME P2P lending. Analyzing credible sources through an interview process with MSME actors who have utilized peer to peer lending facilities. This study uses a qualitative method. Analysis shows that P2P lending benefits MSME. First, P2P lending offers easier and faster access to financing, which helps MSME get loans from traditional banks. Second, the P2P lending platform offers flexibility in loan terms that can be tailored to the unique needs of each MSME, increasing their chances of obtaining financing. In general, peer-to-peer lending requires very appropriate benefits for MSME actors.

Синдицированное кредитование для малого и среднего бизнеса

Being one of the main instruments of corporate financing, a syndicated loan is provided to the borrower by two or more lenders, subject to the use of standard legal documentation. The subject of the study is the syndicated lending market as a source of attracting financing for small and medium—sized businesses. The objectives of the work are to establish the advantages and disadvantages of syndicated loans from the point of view of borrowers in the segment of small and medium—sized businesses; description of syndicated lending market instruments – revolving credit lines, term loans, investment financing transactions that can be used by borrowers to attract credit resources; comparative analysis of "classic" syndicated loans and syndicated transactions for small and medium-sized businesses on such parameters as applicable tools, loan volume, loan term, transaction participants, legal documentation, information package, transaction implementation schedule. The article concludes that a syndicated loan can become an important tool for attracting financing for small and medium-sized businesses. Such transactions will be carried out by banks, which are the main financial partners of borrowers, using standard forms of legal documentation and using specialized financial technologies to optimize the transaction process. The combination of these factors will allow a new segment of the Russian syndicated lending market to appear in the future – a segment of transactions for borrowers of small and medium-sized businesses.

Effect of External Debt on External Reserves in Nigeria

It is widely held that developing nations are constrained by insufficient funds to build basic infrastructure that would set the pace for capital formation and sustainable growth. Faced with shortfalls in revenue and the need to increase investment in public works, developing countries engage in deficit spending to bridge the gap in funding public expenditure. One source of deficit spending is external debts. This study investigates the effect of external debt on external reserves in Nigeria from the first quarter of 2009 to the fourth quarter of 2022. An ex post facto research design was adopted for the study. Quarterly time series data for external reserves, multilateral debt, and bilateral debt were collected from the Central Bank of Nigeria statistical bulletin and Debt Management Office reports. Philip Perron test was used to test the stationarity of the data and the Johansen cointegration test was utilized to determine the presence of a long-run relationship. Dynamic Ordinary Least Squares technique was used to test the effect of external debt on external reserves in Nigeria. The findings showed that multilateral debt has a significant effect on external reserves in Nigeria. However, bilateral debt has an insignificant effect on external reserves in Nigeria. The study recommends that the Nigerian government should strengthen its capacity in debt negotiation and contracting. This involves conducting comprehensive assessments of loan terms, interest rates, grace periods, and repayment schedules before accepting multilateral debt. Furthermore, the Ministry of Finance through the Debt Management Office should continue to improve its debt monitoring and evaluation mechanisms for bilateral loans. This involves establishing transparent processes to track the utilization and impact of borrowed funds.

The Unfolding Sovereign Debt Crisis

Following the 2008 global financial crisis, years of low interest rates provided a rare opportunity for many developing nations to borrow in international markets—whether issuing bonds in their own currencies, securing loans from private-sector banks and commodity traders, or borrowing from China, which emerged as a dominant official creditor. Developing countries’ overall external debt rose to a record level during this period. As central banks raise interest rates sharply to counter a global rise in inflation, many of these countries are at risk of default. The mix of public and private creditors and the opacity of many loan terms make it difficult to coordinate restructuring. The key factor may be domestic politics.

Microcredit Services to Reduce Vulnerabilities in Italy: An Exploratory Study Using Focus Groups

The development and promotion of microfinance services has been viewed as a key policy and program intervention for poverty reduction and bottom up economic and social local development. This study aims to analyze critically the role of microcredit in Italy as a tool to facilitate the credit access to vulnerable people and help them establish or expand a business. Using focus groups, the research analyses the mechanisms through which the involvement in microcredit operations results in positive (and negative) effects on people’s lives. During the group discussion, microcredit emerges as a positive instrument representing a great opportunity to allow people to find a form of employment, in the respect of the human rights. The credit seems to be even more important for young and migrants as a way to become independent economically, to start playing a new role in the society. However, the initial support and the following assistance during the loan term emerge as fundamental elements for the success of microloans, not only for the most vulnerable borrowers. These results suggest that effective microcredit policies should support the provision of non-financial services along with microcredit.

Explaining the Effects of Credit Score on Mortgage Rates

In this research project, we are trying to reject the null hypothesis that credit score does not affect the interest rate on a mortgage loan. This is important because the majority of homeowners have financed their home using a mortgage loan, and the interest rate they receive depends on many different factors, including credit scores. If homeowners are aware that a higher credit score will effectively help them lower the interest rate they pay on their mortgage, they can work to improve it and save money. Our main findings indicate that there is a significant relationship between mortgage interest rates, combined loan to value, unpaid principal balance, original loan term, occupancy, property type, and whether they are a first-time home buyer. The data also suggests that credit score does indeed have a statistically significant effect on what kind of interest rate borrowers receive on their loans. A higher credit score will tend to lower the interest payment homeowners must pay on their mortgage.

Impact of Microfinance on Micro, Small and Medium Enterprises (MSMEs) in Southwest Nigeria.

This study examines the impact of microfinance on micro, small and medium enterprises (MSMEs) in southwest Nigeria. The study employed primary data and Three hundred questionnaires (300) were collected from MSMEs operators. This study adopted a multi-stage random sampling technique in the selection of the sample. The study employed OLS regression to analyse the impact of microfinance on MSMEs. The study revealed that microfinance has a strong impact on micro, small and medium enterprises (MSMEs) in southwest Nigeria. The study shows that the impact of selected variables on MSMEs varied from BREG which have the lowest impact of about 0.07% to loan (LN) with highest impact of about 1%. This study is however able to discover that convenience of Loan Repayment has adverse effect on micro, small and medium enterprises (MSMEs) in southwest Nigeria. Hence, the study therefore recommends that government should make necessary policy to enable microfinance bank to offer medium term loan to MSMEs in order to make the loan repayment possible and affordable.

Credit Portfolio Diversification and Firm Performance of Nepalese Commercial Banks

This study examines credit portfolio diversification and firm performance of Nepalese commercial banks. Return on asset and return on equity are selected as the dependent variables. Similarly, real estate loan, term loan, overdraft loan, deprived sector loan, capital adequacy ratio, loan to deposit ratio, and non-performing loan are selected as the independent variables. This study is based on secondary data of 22 commercial banks with 132 observations for the study period from 2015/16 to 2020/21. The data were collected from Banking and Financial statistics published by Nepal Rastra Bank, reports published by Ministry of Finance, the annual report of respective banks and World Bank database. The correlation coefficients and regression models are estimated to test the significance and relationship between credit portfolio diversification and firm performance of Nepalese commercial banks.
 The study showed that capital adequacy ratio has a positive impact on return on asset. It indicates that increase in capital adequacy ratio leads to increase in return on asset. However, the study also shows that that real estate loan, term loan, overdraft loan, deprived sector loan, and non-performing loan are negative factors that affect return on assets (ROA) of commercial banks in Nepal. It indicates that real estate loan, term loan, overdraft loan, deprived sector loan, and non-performing loan have a negative impact on bank return on assets indicating that higher the real estate loan, term loan, overdraft loan, deprived sector loan, and non-performing loan, lower would be the bank return on assets (ROA). On the other hand, real estate loan and overdraft loan are the positive and significant (at 5% level of significance) factors that affect the return on equity of commercial bank of Nepal. It indicates that increase real estate loan and overdraft loan ratio leads to increase in return on equity. Moreover, the regression result also shows that deprived sector loan and non-performing loan are positive factors that affect the return on equity but the impact is not significant. However, term loan, capital adequacy ratio and loan to deposit ratio has a negative impact on return on equity (ROE) and the result is statistically insignificant.

Cooperative Group In Current Vietnamese Commercial Environment

Purpose: The article researches the compatibility between the cooperative group and the current commercial environment in Vietnam to propose for improvement to the laws and for promotion of development of the cooperative group. Theoretical framework: Recent literature points out that the cooperative group model is quite suitable for the production and business psychology of citizens in Vietnam. In the current stage of development, however, from the influence and impact of international integration and the increasingly fierce competitive pressure of various types of enterprises, the cooperative group have encountered many difficulties to survive. On the other hand, in the context of judicial reform in Vietnam, the issue of complete law system and expanding the freedom to business has always been paid special attention by the Party and Vietnam State. Design/methodology/approach: The authors have combined traditional research methods of legal science such as legal analysis method, legal efficiency assessment method and legal comparison method. Findings: According to research, the cooperative group is well adapted to Vietnam's commercial environment because it is compatible with investor psychology and meets the conditions and circumstances of nature, economy and society. However, since Vietnam's deep integration with the rest of the world, the cooperative group model has faced numerous difficulties and challenges, and if suitable solutions are not found, it is very likely that this collective economy will become increasingly difficult. As a result, the article suggests some important solutions, such as offering cooperative group legal status and requiring more preferential lending policies with long loan terms, simple and quick loan procedures, and easy team cooperation. Research, Practical & Social implications: This research may support many develop future research in Vietnam. Originality/value: The study of the freedom to business become more and more urgent and very important in Vietnam.

Analisis Anuitas Kredit Motor Honda Revo FI Fit

Along with the many needs of the community for their lives, especially in motorized vehicles, many financial institutions provide credit facilities to make it easier for people who want to own a motorbike in the near future but are constrained by costs. One of the institutions that provide a credit system is Honda. Honda has launched many kinds of products, one of which is Revo FI FIT. To attract buyers, Honda provides various installment offers with loan amounts and terms. The data used in this study is secondary data in the form of qualitative data by searching documents from the Honda Cengkareng website which was updated on November 30, 2022. In this study, we will analyze whether the installment calculation is in accordance with the annuity theory or not. Based on the results of data processing by calculating the theoretical formula of compound interest and ordinary annuities, it is found that the calculation of the motorcycle loan annuity is not in accordance with the ordinary annuity theory, where the installments using the ordinary annuity theory are smaller than the installments listed on the web.

The impact of laws and institutions on financial contracts: Evidence from relationship lending across the world

Using loan data from public firms from 40 countries, we examine the association between lending relationships and loan contract terms. We find significant variation across countries regarding the benefits and costs of banking relationships, which can be explained by the countries’ differential legal and regulatory environments. In countries with weak disclosure regulations and institutions, borrowers pay significantly higher interest rates on relationship loans. However, as countries’ disclosure regulations improve, the gap in the interest cost between relationship and transactional loans is reduced. In further corroboration of this effect, we document an improvement in the relative costs of relationship lending following a country's IFRS adoption.

Technical efficiency analysis: Management factor as determinants of saving and credit cooperatives’ health

The main purpose of this study is to analyze the technical efficiency of Saving and Credit Cooperatives (SACCOs) and the impact for SACCOs’ health using primary data obtained from a survey of 178 respondents of SACCOs in East Java, Indonesia. The three stages of the analysis used are Data Envelopment Analysis (DEA), Tobit Regression and Logistic Regression. Based on the results of the analysis using the DEA method, it is concluded that the average performance that can be achieved by SACCOs with existing technology is 65 % of the maximum potential yield. There are 61.3 % of SACCOs which are declared technically inefficient. The factors that influence the level of technical efficiency of Saving and Credit Cooperatives are interest, loan term, manager's age, and type of business. Furthermore, the factors that affect the health of the cooperative based on logistics analysis are the variable frequency of management meetings, age of the cooperative, fixed deposits and average loan. This study supports the SACCOs in becoming more efficient and healthy with the influence of external policy (from government) and internal policy (from SACCOs). • Technical efficiency • Saving and credit cooperatives' health • Management factor

Heat projections and mortgage characteristics: evidence from the USA

Climate change is increasingly acknowledged as a fundamental risk to the stability of the financial system. The linkage between residential mortgage lending and local heatwave projections has hitherto received little attention in the climate finance discourse despite recognition of the detrimental effects of extreme heat on economic output measures. Through economic, demographic and other channels, future climate conditions can affect the housing market and, thus, the residential mortgage market. Moreover, the potential for contagion is high considering US residential mortgages’ key role in financial cycles and cross-border effects. First, our paper furthers conceptual and empirical understandings of the nexus between future extreme heat and lenders’ credit risk. Second, for the contiguous US states, we show that interest rates are higher and loan terms are shorter in areas forecast to experience a larger increase in the number of hot days over the coming decades after controlling for a range of factors. Rate spreads are higher still in areas where the number of hot days is projected to be extreme. It is lending from non-banks, rather than banks, that appears sensitive to the changing climate.

Exploring Dimensions of Financial Inclusion from Stakeholders' Perspectives: Evidence from Rural Areas of Jammu District

Reserve Bank of India devised initiatives to provide affordable and easy financial services to not only the privileged ones but also to the ignored and neglected sections of our society. Regardless of their personal net worth or the size of their organization, all individuals and organizations should be able to access and afford financial products and services according to the determinants of financial inclusion. Financial penetration is a relative small term which is used to represent the share of one credit agency relative to that of others in the credit market. In other words we can say that financial penetration is expressed in terms of loans availed by the household from different sources of credit institutions and non-institutional financial sources. As the union territory of Jammu and Kashmir comprises of different topographic and demographic regions, which include the plains, mountainous and snow-bound areas, the financial facilities are not evenly distributed all over the geographical areas of the union territory of Jammu and Kashmir. This study is confined to territorial areas of district Jammu. Many isolated villages struggle to meet their basic financial demands as a result of the lack of banking facilities. Following this scenario, to ascertain financial inclusion level of the region, a study was done using three different perspectives, including credit penetration, deposit penetration and branch penetration in remote regions of all blocks of district Jammu in the UT of Jammu and Kashmir.

Effect of Financing Decisions on Financial Performance of Small and Medium Enterprises in Nairobi City County, Kenya

Small and medium enterprises play a role in contributing to the development of the economy through job creation, poverty eradication, wealth creation as well as the creation of new businesses. However, SMEs have significantly high incidences of illiquidity and lack of credit access. Over the last two decades, alternative sources of SME financing have emerged and include equity, short-term debt, long-term debt, and internal financing. Nonetheless, despite the availability of these sources of financing, SMEs in Kenya are still experiencing poor financial performance. This study, therefore, sought to investigate the influence of financing decisions on the financial performance of SMEs in Nairobi City County, Kenya. The study sought to determine the influence of equity financing, short-term debt, long-term debt, and internal financing on the financial performance of small and medium enterprises in Nairobi City County. The study sought to determine the moderating effect of firm characteristics on the relationship between financing decisions and the financial performance of small and medium enterprises in Nairobi City County. An explanatory research design was used in this study. The unit of analysis was the top 100 small and medium enterprises in Nairobi City County. Stratified random sampling was used in the selection of 80 SMEs from the target population. This study used secondary panel data, which was collected by the use of a data extraction tool. Analysis of quantitative data was done by the use of inferential and descriptive statistics with the help of statistical software known as Stata version 14. This was followed by inferential statistics which included multivariate regression analysis. The results were presented in figures (bar charts and pie charts) and tables. The study found that equity financing has a positive and significant influence on the financial performance of SMEs in Nairobi City County. The study also established that short-term debt has a positive and significant influence on the financial performance of SMEs in Nairobi City County. In addition, the study established that long-term debt has a positive and significant effect on the financial performance of SMEs in Nairobi City County. Also, the study revealed that internal financing has a positive and significant effect on the financial performance of SMEs in Nairobi City County. The study recommends that the management of small and medium enterprises should make use of equity financing whenever they want to explain their businesses and when they are financing different projects including product development and internal business process improvement. Also, the management of small and medium enterprises should obtain loans from banks, Sacco’s, and microfinance institutions to finance their operations. Moreover, the study recommends that the SMEs in Nairobi City County should avoid obtaining short term loan since these loans have high interest which requires to be paid for a brief period of time and hence may negatively affect the financial performance of the SMES. The study recommends that the management of small and medium enterprises should seek to increase the total assets of their organization so as to enable them to obtain loans from financial institutions to grow their business and improve financial performance.

Analysis of Unsecured Loans (KTA) in Terms of the Prudential Banking Principle

Analysis of Unsecured Loans (KTA) in Terms of the Prudential Banking Principle

The Impact of Digital Transformation on Corporate Short Term Lending and Long Term Investment -A Sample Analysis Based on Chinese A-share Listed Companies

The lack of effective management of the planning and scheduling of funds by enterprises can lead to the emergence of short term loans and long term investments. Although short term loans and long term investments allow enterprises to arrange funds more flexibly and easily, they can seriously endanger the healthy and stable development of enterprises. Therefore, it is important to improve the current situation of the proliferation of short term loans and long term investments. In this paper, we study the economic effects of digital transformation on enterprises' short term loans and long term investments. Firstly, the collected sample data - 11-year financial data of Shanghai and Shenzhen A-share companies from 2011-2021 - are processed to make the data more realistic and representative, and then the data are empirically tested and regression analyzed using Stata and Spss software to study the effect of digital transformation on short loans and long investments of enterprises . The results of the study show that: digital transformation of enterprises can effectively inhibit enterprises' short loans and long investments; the larger the scale of enterprises and the larger the asset-liability ratio, the greater the possibility of enterprises' short loans and long investments. Finally, based on the research findings, recommendations are drawn: enterprises should allocate funds rationally; enterprises should expand the scale advantage of internal talents; the government should provide policy support for enterprises' digital transformation; and the internal and external market environment should be optimized.

EKSPLORASI KEPUASAN DAN LOYALITAS PELANGGAN DALAM LAYANAN BANK DAN FINTECH: STUDI KUALITATIF

Banks have an important role in managing public finances both in terms of deposits or loans to improve people's lives. Along with the advancement of technology, the financial services business is also growing with the presence of financial technology which is expected to be able to provide various conveniences to users. However, financial technology (fintech) and banks have various types, so that customer satisfaction and loyalty are not known with certainty. For this reason, researchers want to explore customer satisfaction and loyalty to bank and fintech services with a qualitative approach. The purpose of this study was to explore customer satisfaction and loyalty in using bank and fintech services so that further actions can be identified to improve service quality. The method used is qualitative with data collection techniques through observation and interviews with 20 respondents who were randomly selected. In addition, this research was conducted in X district located in Central Java. The research data obtained will be analyzed in depth so that it is known that customer satisfaction is obtained from friendly, precise and agile customer service as well as the quality of the financial applications or technology offered both in terms of convenience and data security so that they are not easily hacked or account breaches. Then regarding loyalty, the majority of respondents persist with strong assumptions or paradigms regarding the convenience of a bank and also the many bank users they follow, such as BRI, Mandiri with fintech, each bank already has it as well as brimo livin, and so on that makes it easier users make transactions from anywhere and anytime.