Effect of Psychological Factors on Credit Risk: A Case Study of the Microlending Service in Mongolia.

ABSTRACT: This paper determined the predefining factors of loan repayment behavior based on psychological and behavioral economics theories. The purpose of this research is to identify whether an individual's credit risk can be predicted based on psychometric tests measuring areas of psychological factors such as effective economic decision-making, self-control, conscientiousness, selflessness and a giving attitude, neuroticism, and attitude toward money. In addition, we compared the psychological indicators to the financial indicators, and different age and gender groups, to assess whether the former can predict loan default prospects. This research covered the psychometric test results, financial information, and loan default information of 1118 borrowers from loan-issuing applications on mobile p

SUBMITTER: Ganbat M 

PROVIDER: S-EPMC8067141 | biostudies-literature | 2021 Apr

REPOSITORIES: biostudies-literature