MICRO FACTORS AFFECTING PERSONAL LOAN DEFAULT RISK IN COMMERCIAL BANKS IN DANANG, VIETNAM

This paper examines the micro factors affecting the risk of personal loan default using 6,287 loans to 4,023 individual customers from a commercial bank in Danang for the period between 2016 and 2020. Variables related to the characteristics of the loan, the customer, and bank’s credit officer are included in the logistic regression model. The result shows that the risk of personal loan default is related to the size and the purpose of the loan, customer’s gender and borrowing experience, and credit officer’s age. On the other hand, no relation is found between loan’s maturity duration, customer’s age, and credit officer’s gender and experience