We conducted a survey using a questionnaire that covered consumer finance
and other types of loans. The purpose was to determine the characteristics
of borrowers who can repay their loans and borrowers who fall behind in
their payments and require assistance. We selected “repaid loan borrowers”
and “problem borrowers” based on our own revenue from a sample of past
users of consumer finance. We then analyzed the differences between these
two groups.
An analysis of the maximum outstanding balances of these two borrower categories reveals that the repaid loan borrowers have small balances while problem borrowers carry very large balances. However, there were instances of repaid loan borrowers having large balances and problem borrowers having small balances. A loan balance of 2 million to 3.5 million yen is the divided zone for repaid loan borrowers and problem borrowers.
Next, we performed discriminant analysis to identify the characteristics
of individuals who took out consumer loans and then either repaid the loans
or became problem borrowers. Discriminant accuracy is very high overall
at 91%, with accuracy of 93% for repaid loan borrowers and 89% for problem
borrowers. Comparing the variables of the discriminants obtained revealed
a much larger number of variables involving an individual’s view of monetary
management than variables involving economic borrower categories like jobs
and geographic location.
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